Survey in Japan Show Sharp Decline in Confidence Ahead of Election

Nigel Thomas
14 Dec, 2012
New York City

Stocks in Japan traded near the recent highs and the yen dropped to a 9-month low. Markets have rallied in the last three weeks on the hopes that the main opposition party is likely to win the next general election on Sunday.

[R]7:00 PM Tokyo – Stocks in Japan traded near the recent highs and the yen dropped to a 9-month low. Markets have rallied in the last three weeks on the hopes that the main opposition party is likely to win the next general election on Sunday.[/R]

Stocks in Tokyo hovered near the recent 8-month high as the yen dropped to a nine-month low and investors focused on the results of general election on Sunday.

The yen dropped to 83.94 in Tokyo trading on the expectations that next government may stimulate the economy and demand more monetary steps from the central bank.

The latest media polls suggest that LDP led main opposition party and coalition members are expected to win as many as 300 of the 480 seats in the lower house. The win is likely to return Shinzo Abe, the leader of LDP party, as the next prime minister.

The latest Tankan survey of big businesses showed a sharp decline in market sentiment, according to the Bank of Japan.

The Tankan index declined to minus 12 in December from minus 3 in September.

Investors are also looking ahead the release of large manufacturer survey from Bank of Japan and the expectations are low. The sentiment is expected to drop to the weakest since the first quarter of 2010.

The Nikkei 225 Stock Average edged down 5.17 to 9,737.56 and the broader Topix Index up 1.83 to 801.04. For the week, the Nikkei climbed 2.2%.

The yen edged lower and closed at 83.43 against one dollar.

Stocks in Review

IHI Corp, the maker of rocket propulsion system gained 5 yen to 196 yen. Fuji Heavy Industries Ltd, the maker of aircraft parts increased 13 yen to 958 yen.

Kansai Electric Power climbed 27 yen to 782 yen and Tokyo Electric Power Co surged 11 yen or 7.8% to 152 yen. Shikoku Electric jumped 27 yen to 1,134 yen and Chubu Electric Power Co advanced 29 yen to 1,084 yen.

Toyota Motor Corp. closed unchanged at 3,600 yen and Honda Motor Co. gained 5 yen to 2,829 yen and Nissan Motor Co Ltd slid 3 yen to 785 yen. Mazda Motor Corp rose 1 yen to 143 yen. Isuzu Motors Ltd lowered 3 yen to 491 yen.

Nippon Steel increased 4 yen to 188 yen and JFE Holdings Inc jumped 12 yen to 1,374 yen. Tokyo Steel Manufacturing soared 20 yen or 6.3% to 340 yen.

All Nippon Airways up 0.6% to 176 yen and. JAL plummeted 95 yen to 3,660 yen.

Fujikura Ltd added 2 yen to 245 yen and TDK closed unchanged at 3,325 yen. Murata Manufacturing Co increased 5 yen to 4,885 yen and Meiko Electronics Co Ltd slipped 1.4% or 710 yen.

Shimano Inc closed unchanged at 5,700 yen.

Oki Electric Industry gained 2 yen to 91 yen, Ricoh Co Ltd increased 11 yen to 820 yen, Sony Corp climbed 20 yen to 906 and Seiko Epson Corp soared 33 yen or 6.1% to 576 yen.

Canon Inc advanced 20 yen to 3,160 yen and Nikon slumped 13 yen to 2,388 yen.

Olympus Corp. dropped 33 yen to 1,373 yen and Nintendo Co. Ltd declined 340 yen to 8,730 yen, Fujitsu surged 21 yen or 6.8% to 328 yen and Pioneer Corp. added 3 yen to 221 yen. Sharp Corp soared 19 yen or 7.6% to 269 yen. Panasonic Corp added 1 yen to 482 yen.

Fanuc Corp. jumped 40 yen to 15,040 yen and Komatsu Ltd gained 19 yen to 1,935 yen. Hitachi Construction Machinery Co increased 16 yen to 1,540 yen.

Sumitomo Heavy closed unchanged at 380 yen.

FamilyMart Co Ltd, the convenience chain operator declined 55 yen to 3,550 yen and Lawson dropped 110 yen to 5,540 yen. Ito En Ltd slid 2 yen to 1,543 yen.

Seven & I Holdings Co slumped 23 yen to 2,395 yen.

Fast Retailing Co. declined 280 yen to 19,920 yen and J. Front Retailing Co. Ltd added 4 yen to 421 yen.

Mitsubishi UFJ Financial Group up 6 yen to 388 yen and Sumitomo Mitsui Financial Group increased 8 yen to 2,780 yen. Nomura Holdings, Inc added 2 yen to 366 yen.

Mitsui O.S.K. Lines, Ltd down 2 yen to 215 yen and Nippon Yusen K.K. added 2 yen to 179 yen.