Nikkei Surges 1.6% to Reach 6-Month High, Yen at New 7-Month Low

Nigel Thomas
22 Nov, 2012
New York City

Nikkei index in Japan surged to a six-month high as the yen hit a new seven-month low. Investors have bid up stocks ahead of general elections on the hopes that the new government may put more pressure on central bank to offer more stimulus measures.

[R]7:00 PM Tokyo – Nikkei index in Japan surged to a six-month high as the yen hit a new seven-month low. Investors have bid up stocks ahead of general elections on the hopes that the new government may put more pressure on central bank to offer more stimulus measures.[/R]

The politics of government fiscal management overshadowed market sentiment as investors hoped that new government after general election will pursue more economic stimulus and weaker yen

The yen traded to a new seven-month low and lifted the benchmark Nikkei index to a 6-month high. Automakers and electronics makers led the gainers as the yen weakened on the hopes of higher earnings.

The yen has depreciated 4% in the last seven trading sessions and lifted the benchmark Nikkei index 6.5%. The Nikkei gained 3.8% in the short week and closed at a high not seen since May 2. For the year, the Nikkei is up 10.8%.

The Nikkei 225 Stock Average climbed 144.28 or 1.6% to 9,366.80 and the broader Topix Index jumped 9.42 or 1.2% to 776.43.

The yen weakened to a new 7-month low to 82.57 against one dollar.

Stocks in Review

Toyota Motor Corp. climbed 80 yen to 3,515 yen and Honda Motor Co. jumped 93 yen to 2,750 yen and Nissan Motor Co Ltd gained 22 yen to 788 yen. Mazda Motor Corp added 4 yen to 130 yen.

Isuzu Motors Ltd up 0.4% to 478 yen

Nippon Steel increased 6 yen to 193 yen and JFE Holdings Inc advanced 48 yen to 1,286 yen. Tokyo Steel Manufacturing added 2 yen to 311 yen.

Fujikura Ltd gained 3% to 237 yen and TDK jumped 65 yen to 3,180 yen. Murata Manufacturing Co climbed 85 yen to 4,575 yen and Meiko Electronics Co Ltd soared 7.5% or 656 yen.

Shimano Inc dropped 40 yen to 5,250 yen.

Oki Electric Industry closed unchanged at 74 yen, Ricoh Co Ltd jumped 26 yen to 775 yen, Sony Corp increased 15 yen to 834 and Seiko Epson Corp surged 25 yen or 5.4% to 489 yen. Canon Inc climbed 92 yen to 2,912 yen and Nikon advanced 81 yen to 2,177 yen.

Olympus Corp. gained 3% to 1,420 yen and Nintendo Co. Ltd increased 240 yen to 10,390 yen, Fujitsu up 3 yen to 304 yen and Pioneer Corp. added 6 yen to 195 yen. Sharp Corp climbed 7 yen or 4.3% to 171 yen. Panasonic Corp increased 3 yen at 407 yen.

Fanuc Corp. advanced 170 yen to 14,000 yen and Komatsu Ltd climbed 23 yen to 1,846 yen. Hitachi Construction Machinery Co jumped 39 yen to 1,456 yen.

Sumitomo Heavy gained 3.5% to 354 yen.

FamilyMart Co Ltd, the convenience chain operator slipped 5 yen to 3,545 yen and Lawson declined 90 yen to 5,390 yen. Ito En Ltd increased 5 yen to 1,463 yen.

Seven & I Holdings Co slumped 16 yen to 2,330 yen.

Yamada Denki plummeted 72 yen to 2,900 yen. Nitori Holdings Co dropped 160 yen to 5,860 yen, apparel retailer Shimamura decreased 50 yen to 8,180 yen and Sagami Co added 3 yen to 122 yen.

Fast Retailing Co. climbed 240 yen to 17,860 yen and J. Front Retailing Co. Ltd slipped 12 yen to 380 yen.

Inpex Corp slid 0.2% to 455,500 yen, Japan Petroleum Exploration Co. declined 33 yen to 2,910 yen. Tokyo Electric Power Co, Inc. lowered 2 yen to 128 yen.

Mitsubishi UFJ Financial Group gained 5 yen to 376 yen and Sumitomo Mitsui Financial Group closed unchanged at 2,576 yen. Nomura Holdings, Inc surged 20 yen or 6.2% to 342 yen.

Japan Airlines Co Ltd dropped 60 yen to 3,540 yen and All Nippon Airways up 1 yen to 177 yen.

Mitsui O.S.K. Lines, Ltd gained 5 yen to 211 yen and Kawasaki Kisen Kaisha, Ltd added 2 yen to 108 yen and Nippon Yusen K.K. gained 6 yen to 173 yen.