Election Hopes Drive Nikkei to a 2-Month High, Yen at 7-Month Low

Nigel Thomas
19 Nov, 2012
New York City

Stocks in Tokyo advanced for the fourth day in a row as investors took bet for the change of power in the general election next month and see more stimulating measures from the central bank. The Nikkei index closed at 3-month high and the yen fell to a 7-month low.

[R]7:00 PM Tokyo – Stocks in Tokyo advanced for the fourth day in a row as investors took bet for the change of power in the general election next month and see more stimulating measures from the central bank. The Nikkei index closed at a 2-month high and the yen fell to a 7-month low.[/R]

Stocks in Tokyo extended gains for the fourth day in a row and the Nikkei index advanced 1.4% in the session and stretched the market gain to 5.7% and closed at a 2-month high.

Investors bid up stocks after Liberal Democratic Party leader Shizo Abe repeated a call on the Bank of Japan to stimulate the economy more and weaken the yen.

The stocks were powered for the fourth day on the hopes that the opposition party may win the next general election scheduled on December 16 and ease restrictions on the utilities companies to access nuclear power, weaken the yen further and look for more stimulating measures from the central bank.

The Nikkei 225 Stock Average jumped 129.04 or 1.4% to 9,153.20 and the broader Topix Index climbed 10.82 or 1.4% to 762.16.

The yen fell to a 7-month high to 81.57 to a dollar and rose to 103.81 yen from 103.15 at the close of Friday.

Stocks in Review

Toyota Motor Corp. climbed 45 yen to 3,370 yen and Honda Motor Co. gained 11 yen to 2,602 yen and Nissan Motor Co Ltd increased 13 yen to 751 yen. Mazda Motor Corp closed unchanged at 121 yen.

Isuzu Motors Ltd slid 0.6% to 466 yen

Nippon Steel gained 6 yen to 184 yen and JFE Holdings Inc advanced 22 yen to 1,224 yen. Tokyo Steel Manufacturing slumped 7 yen to 272 yen.

Fujikura Ltd climbed 3.6% to 231 yen and TDK jumped 35 yen to 3,115 yen. Murata Manufacturing Co increased 30 yen to 4,305 yen and Meiko Electronics Co Ltd gained 2.7% or 565 yen.

Shimano Inc advanced 60 yen to 5,310 yen.

Oki Electric Industry added 1.3% to 76 yen, Ricoh Co Ltd gained 26 yen to 729 yen, Sony Corp up 3 yen to 822 and Seiko Epson Corp dropped 9 yen to 473 yen. Canon Inc jumped 120 yen to 2,817 yen and Nikon climbed 93 yen or 4.7% to 2,080 yen.

Citizen Holdings Co increased 7 yen to 385 yen.

Olympus Corp. gained 0.8% to 1,383 yen and Nintendo Co. Ltd advanced 110 yen to 10,680 yen, Fujitsu added 2 yen to 296 yen and Pioneer Corp. up 3 yen to 188 yen. Sharp Corp slipped 4 yen to 175 yen. Panasonic Corp jumped 12 yen at 423 yen.

Fanuc Corp. climbed 430 yen to 13,800 yen on positive comments from a broker and Komatsu Ltd increased 60 yen to 1,812 yen. Hitachi Construction Machinery Co gained 22 yen to 1,418 yen.

Sumitomo Heavy added 0.3% to 347 yen.

FamilyMart Co Ltd, the convenience chain operator increased 30 yen to 3,485 yen and Lawson gained 40 yen to 5,370 yen. Ito En Ltd added 11 yen to 1,470 yen.

Seven & I Holdings Co jumped 53 yen to 2,349 yen.

Yamada Denki climbed 45 yen to 3,105 yen. Nitori Holdings Co up 20 yen to 5,970 yen, apparel retailer Shimamura advanced 30 yen to 8,140 yen and Sagami Co closed unchanged at 117 yen.

Fast Retailing Co. increased 250 yen to 17,420 yen and J. Front Retailing Co. Ltd added 10 yen to 386 yen.

Inpex Corp gained 1.6% to 454,000 yen, Japan Petroleum Exploration Co. climbed 83 yen to 2,911 yen. Tokyo Electric Power Co, Inc. rose 6 yen to 132 yen.

Mitsubishi UFJ Financial Group up 3 yen to 369 yen and Sumitomo Mitsui Financial Group increased 29 yen to 2,558 yen. Nomura Holdings, Inc gained 5 yen to 321 yen.

Japan Airlines Co Ltd plummeted 60 yen to 3,730 yen and All Nippon Airways added 3 yen to 172 yen.

Japan Tobacco surged 148 yen or 6.5% to 2,411 yen to a 3-month high after the Ministry of Finance said on Friday that the government is not looking to sell shares in the company before the year-end.

Mitsui O.S.K. Lines, Ltd up 2 yen to 197 yen and Kawasaki Kisen Kaisha, Ltd added 2 yen to 104 yen and Nippon Yusen K.K. gained 2 yen to 162 yen.