LDP Reclaims Power in Japan; Yen at 20-Month Low, Tepco Surges 33%

Nigel Thomas
17 Dec, 2012
New York City

The opposition Liberal Democratic Party was voted with super majority in a general election in Japan. Nikkei index gained 0.9% and reached a new 8-month high and electric utilities surged. Tepco soared 33%. The yen declined to 20-month low.

[R]7:00 PM Tokyo – The opposition Liberal Democratic Party was voted with super majority in a general election in Japan. Nikkei index gained 0.9% and reached a new 8-month high and electric utilities surged. Tepco soared 33%. The yen declined to 20-month low.[/R]

The benchmark Nikkei index rallied 0.9% after the Liberal Democratic Party regained power and in a landslide election victory.

In Sunday’s election, LDP won 294 seats of the 480 in the lower house of the parliament and the leader of the party Shinzo Abe is set to replace Prime Minister Yoshihiko Noda. Abe will return to power after leaving the office five years ago on health reasons.

Market indexes gained after the LDP win of super majority in the election that will allow the next Prime Minister Abe more leeway in implementing his policy that favors nuclear power and more monetary easing.

The Nikkei 225 Stock Average increased 91.32 or 0.9% to 9,828.88 and the broader Topix Index gained 6.80 to 807.84.

The yen edged lower and closed at 84.48 against one dollar, a 20-mnth low.

Stocks in Review

IHI Corp, the maker of rocket propulsion system slid 2 yen to 194 yen. Fuji Heavy Industries Ltd, the maker of aircraft parts increased 13 yen to 971 yen.

Kansai Electric Power surged 138 yen or 17.6% to 920 yen and Tokyo Electric Power Co soared 50 yen or 32.9% to 202 yen. Shikoku Electric climbed 174 yen or 15.3% to 1,308 yen and Chubu Electric Power Co jumped 104 yen or 9.6% to 1,188 yen.

Toyota Motor Corp. increased 20 yen to 3,620 yen and Honda Motor Co. gained 11 yen to 2,840 yen and Nissan Motor Co Ltd advanced 14 yen to 799 yen. Mazda Motor Corp added 2 yen to 145 yen. Isuzu Motors Ltd rose 3 yen to 494 yen.

Nippon Steel increased 5 yen to 193 yen and JFE Holdings Inc jumped 45 yen to 1,419 yen. Tokyo Steel Manufacturing closed unchanged at 340 yen.

All Nippon Airways down 1 yen to 175 yen and. JAL climbed 35 yen to 3,695 yen.

Fujikura Ltd up 1 yen to 246 yen and TDK declined 35 yen to 3,290 yen. Murata Manufacturing Co dropped 155 yen to 4,730 yen and Meiko Electronics Co Ltd gained 0.3% or 712 yen.

Shimano Inc slumped 40 yen to 5,660 yen.

Oki Electric Industry added 1 yen to 92 yen, Ricoh Co Ltd increased 6 yen to 826 yen, Sony Corp climbed 13 yen to 919 and Seiko Epson Corp slipped 11 yen to 565 yen.

Canon Inc decreased 20 yen to 3,140 yen and Nikon slumped 10 yen to 2,378 yen.

Olympus Corp. jumped 26 yen to 1,399 yen and Nintendo Co. Ltd climbed 100 yen to 8,830 yen, Fujitsu up 3 yen to 331 yen and Pioneer Corp. added 4 yen to 225 yen. Sharp Corp soared 32 yen or 11.9% to 301 yen. Panasonic Corp increased 11 yen to 493 yen.

Fanuc Corp. jumped 210 yen to 15,250 yen and Komatsu Ltd gained 45 yen to 1,980 yen. Hitachi Construction Machinery Co decreased 4 yen to 1,536 yen.

Sumitomo Heavy slipped 4 yen to 376 yen.

FamilyMart Co Ltd, the convenience chain operator declined 60 yen to 3,490 yen and Lawson climbed 50 yen to 5,590 yen. Ito En Ltd added 10 yen to 1,553 yen.

Seven & I Holdings Co increased 11 yen to 2,406 yen.

Fast Retailing Co. jumped 580 yen to 20,500 yen and J. Front Retailing Co. Ltd added 3 yen to 424 yen.

Mitsubishi UFJ Financial Group up 7 yen to 395 yen and Sumitomo Mitsui Financial Group increased 17 yen to 2,797 yen. Nomura Holdings, Inc gained 11 yen to 377 yen.

Mitsui O.S.K. Lines, Ltd advanced 7 yen to 222 yen and Nippon Yusen K.K. jumped 7 yen to 186 yen.