Best Monthly Gain in Nikkei Since Feb, Yen Falls on New Stimulus Plan

Nigel Thomas
30 Nov, 2012
New York City

Nikkei index in Tokyo advanced after Japanese government approved the $1.2 billion stimulus measures ahead of general elections. Nikkei gained the best monthly gain since February. The yen traded near eight month low. Industrial production rose in October on a surge in electronics parts production.

[R]7:00 PM Tokyo – Nikkei index in Tokyo advanced after Japanese government approved the $1.2 billion stimulus measures ahead of general elections. Nikkei gained the best monthly gain since February. The yen traded near eight month low. Industrial production rose in October on the best monthly surge in electronics parts production linked to iPhone.[/R]

Stocks in Tokyo traded higher as the yen weakened after Prime Minister Yoshihiko Noda offered another stimulus to the economy and industrial production rose unexpectedly in October.

Prime Minister Noda’s cabinet approved a second round of fiscal stimulus worth 880 billion yen. The $1.2 billion stimulus ahead of the election from the reserve account dragged the yen lower against all 16 major currencies.

Industrial production in October rose 1.8% from the previous month, when it dropped 4.1%, according to the Trade Ministry today.

The unexpected gain in the data underscores the reliance of Japanese electronics industry on the success of iPhone from Apple Inc. Production of electronics parts and devices rose 14.7% from September, the largest monthly increase since at least 1998, according to the ministry.

The Nikkei 225 Stock Average advanced 45.13 or 0.5% to 9,446.01 and the broader Topix Index increased 2.02 to 781.46.

For the week, the Nikkei gained 0.9% and for the month end Nikkei jumped 6.8%, best monthly gain since February.

The yen edged higher and closed at 82.44 against one dollar, near 7-1/2 month low of 82.84.

Stocks in Review

Electric utilities gained for the second day in a row on the hopes of rate hike from the next calendar year.

Shikoku Electric climbed 21 yen to 1,121 yen and Chubu Electric Power Co increased 14 yen to 1,114 yen.

Toyota Motor Corp. gained 20 yen to 3,535 yen and Honda Motor Co. added 6 yen to 2,732 yen and Nissan Motor Co Ltd increased 7 yen to 799 yen. Mazda Motor Corp rose 1 yen to 130 yen. Isuzu Motors Ltd slid 2 yen to 483 yen.

Nippon Steel down 3 yen to 189 yen and JFE Holdings Inc advanced 16 yen to 1,277 yen. Tokyo Steel Manufacturing lowered 1 yen to 289 yen.

Fujikura Ltd slipped 4 yen to 232 yen and TDK climbed 20 yen to 3,225 yen. Murata Manufacturing Co jumped 90 yen to 4,630 yen and Meiko Electronics Co Ltd added 0.8% or 665 yen.

Shimano Inc advanced 60 yen to 5,430 yen.

Oki Electric Industry up 1 yen to 79 yen, Ricoh Co Ltd slipped 6 yen to 765 yen, Sony Corp down 2 yen to 801 and Seiko Epson Corp decreased 13 yen to 482 yen. Canon Inc jumped 34 yen to 2,883 yen and Nikon soared 98 yen or 4.5% to 2,284 yen.

Olympus Corp. up 5 yen to 1,375 yen and Nintendo Co. Ltd dropped 140 yen to 9,950 yen, Fujitsu gained 6 yen to 312 yen and Pioneer Corp. slid 3 yen to 193 yen. Sharp Corp added 3 yen to 172 yen. Panasonic Corp rose 2 yen to 403 yen.

Fanuc Corp. declined 50 yen to 13,900 yen and Komatsu Ltd jumped 21 yen to 1,847 yen. Hitachi Construction Machinery Co increased 23 yen to 1,443 yen.

Mitsubishi Heavy Industries gained 3% to 383 yen after it agreed to merge its thermal power unit with Hitachi with combined sales of 1.1 trillion yen. Mitsubishi Heavy also plans to merge its forklift operations with Nippon Yusoki Co.

Sumitomo Heavy added 8 yen to 346 yen, Hitachi gained 4.2% to 476 yen and Nippon Yusoki soared 36% to 303 yen.

FamilyMart Co Ltd, the convenience chain operator climbed 50 yen to 3,655 yen and Lawson jumped 100 yen to 5,580 yen. Ito En Ltd added 1 yen to 1,521 yen.

Seven & I Holdings Co advanced 39 yen to 2,402 yen.

Fast Retailing Co. gained 230 yen to 18,720 yen and J. Front Retailing Co. Ltd added 2 yen to 398 yen.

Mitsubishi UFJ Financial Group up 1 yen to 377 yen and Sumitomo Mitsui Financial Group climbed 46 yen to 2,654 yen. Nomura Holdings, Inc closed unchanged at 341 yen.

Mitsui O.S.K. Lines, Ltd increased 3 yen to 207 yen and Nippon Yusen K.K. closed unchanged at 175 yen.