Nikkei Gains 0.4%, Yen Weakens on Stimulus Calls

Nigel Thomas
27 Nov, 2012
New York City

Nikkei index gained to a new 7-month high as the yen traded near 8-month low after opposition leader called for more fiscal and monetary easing to lift economic growth. Exporters to Europe gained after ministers agreed on a Greek debt and bailout fund release plan.

[R]7:00 PM Tokyo – Nikkei index gained to a new 7-month high as the yen traded near 8-month low after opposition leader called for more fiscal and monetary easing to lift economic growth. Exporters to Europe gained after ministers agreed on a Greek debt and bailout fund release plan.[/R]

The Nikkei index in Tokyo jumped to a new 7-month high after opposition leader called for bolder steps in stimulating the economy.

The Nikkei 225 Stock Average advanced 34.36 or 0.4% to 9,423.30 and the broader Topix Index gained 2.10 to 781.60.

Exporters to Europe jumped higher after euro zone finance ministers agreed to release the next tranche of Greek bailout funds and lower total debt of the nation to 110% of gross domestic product by 2022.

The package of conditions and incentives will lower Greek debt load by more than 40 billion euros and ministers agreed to release the next tranches of bailout totalling 43.7 billion euros in two parts.

Opposition leader Shinzo Abe called for bolder monetary and fiscal steps to revive the economy and said that the nation cannot restore its fiscal health unless it overcomes deflation.

The dollar traded at 82.27 yen and one euro fetched 106.45 yen.

Stocks in Review

Toyota Motor Corp. dropped 45 yen to 3,530 yen and Honda Motor Co. declined 38 yen to 2,728 yen and Nissan Motor Co Ltd slumped 23 yen to 783 yen. Mazda Motor Corp slid 1 yen to 128 yen.

Isuzu Motors Ltd down 0.4% to 473 yen

Nippon Steel slipped 4 yen to 192 yen and JFE Holdings Inc dropped 39 yen to 1,267 yen. Tokyo Steel Manufacturing decreased 10 yen to 301 yen.

Fujikura Ltd lowered 0.4% to 240 yen and TDK jumped 15 yen to 3,270 yen. Murata Manufacturing Co slipped 5 yen to 4,590 yen and Meiko Electronics Co Ltd added 0.8% or 676 yen.

Shimano Inc increased 100 yen to 5,400 yen.

Oki Electric Industry closed unchanged at 77 yen, Ricoh Co Ltd slid 2 yen to 777 yen, Sony Corp down 3 yen to 815 and Seiko Epson Corp slumped 12 yen to 482 yen. Canon Inc decreased 11 yen to 2,906 yen and Nikon dropped 24 yen to 2,147 yen.

Olympus Corp. down 0.6% to 1,381 yen and Nintendo Co. Ltd dropped 220 yen to 10,140 yen, Fujitsu closed unchanged at 305 yen and Pioneer Corp. closed unchanged at 203 yen. Sharp Corp slid 1 yen to 169 yen. Panasonic Corp lowered 3 yen at 403 yen.

Fanuc Corp. advanced 50 yen to 14,090 yen and Komatsu Ltd declined 30 yen to 1,844 yen. Hitachi Construction Machinery Co slumped 15 yen to 1,441 yen.

Sumitomo Heavy added 0.3% to 354 yen.

Kondotec Inc dropped 7.9% to 457 yen after the construction materials maker said it plans to raise as much as 713.7 million yen through the sale of its shares.

FamilyMart Co Ltd, the convenience chain operator gained 60 yen to 3,595 yen and Lawson climbed 130 yen to 5,460 yen. Ito En Ltd increased 10 yen to 1,501 yen.

Seven & I Holdings Co gained 26 yen to 2,370 yen.

Yamada Denki jumped 96 yen to 2,933 yen. Nitori Holdings Co climbed 140 yen to 5,970 yen, apparel retailer Shimamura advanced 200 yen to 8,300 yen and Sagami Co slid 1 yen to 120 yen.

Fast Retailing Co. increased 350 yen to 18,380 yen and J. Front Retailing Co. Ltd gained 7 yen to 395 yen.

Inpex Corp slipped 0.7% to 452,000 yen, Japan Petroleum Exploration Co. dropped 28 yen to 2,860 yen. Tokyo Electric Power Co, Inc. added 1 yen to 131 yen.

Mitsubishi UFJ Financial Group up 2 yen to 379 yen and Sumitomo Mitsui Financial Group gained 35 yen to 2,623 yen. Nomura Holdings, Inc added 1 yen to 348 yen.

Japan Airlines Co Ltd climbed 150 yen to 3,710 yen and All Nippon Airways closed unchanged at 177 yen.

Mitsui O.S.K. Lines, Ltd slid 3 yen to 206 yen and Kawasaki Kisen Kaisha, Ltd closed unchanged at 108 yen and Nippon Yusen K.K. gained 3 yen to 177 yen.