Nikkei Soars 2.4% on Stimulus Talks and BoJ Expectations

Nigel Thomas
19 Dec, 2012
New York City

The Nikkei index soared 2.4% and crossed 10,000 on the expectations of stimulus budget of as much as $110 billion and the Bank of Japan starts a two-day meeting under an intense political pressure to purse easier monetary policy.

[R]7:00 PM Tokyo – The Nikkei index soared 2.4% on the expectations of stimulus budget of as much as $110 billion and the Bank of Japan starts a two-day meeting under an intense political pressure to purse easier monetary policy.[/R]

Stocks in Tokyo jumped on the expectations of a substantial monetary easing by the Bank of Japan. Markets sentiment was also positive in after the U.S. budget talks progressed and on the optimistic outlook in the euro zone.

The Nikkei 225 Stock Average jumped 237.39 or 2.4% to 10,160.40 and the broader Topix Index jumped 22.49 or 2.8% to 839.34.

For the year, the Nikkei is up 20% and market rallied 16% gain in the last five weeks.

The yen edged lower and closed at 84.28 against one dollar, traded near a 20-mnth low.

Banks, insurance companies and brokerage houses surged on the media reports that the recently elected LDP and coalition partner Komeito have agreed to pass supplementary budget of 10 trillion yen or $120 billion of Japanese government bond buying.

Dai-ichi Life soared 9%, Mitsubishi UFJ gained 6% and Sumitomo Mitsui Financial Group gained 4%.

Weaker yen also lifted electronics and auto makers.

Stocks in Review

Kansai Electric Power advanced 25 yen to 904 yen and Tokyo Electric Power Co sipped 7 yen to 230 yen. Shikoku Electric climbed 37 yen to 1,287 yen and Chubu Electric Power Co increased 12 yen to 1,159 yen.

Toyota Motor Corp. jumped 130 yen to 3,850 yen and Honda Motor Co. surged 178 yen or 6.2% to 3,070 yen and Nissan Motor Co Ltd climbed 44 yen or 5.5% to 844 yen. Mazda Motor Corp gained 5 yen to 150 yen. Isuzu Motors Ltd slumped 8 yen to 490 yen.

Nippon Steel soared 13 yen or 6.7% to 208 yen and JFE Holdings Inc jumped 73 yen to or 5% 1,520 yen. Tokyo Steel Manufacturing surged 28 yen or 8.3% to 365 yen.

All Nippon Airways closed unchanged at 177 yen and. JAL declined 55 yen to 3,695 yen.

Fujikura Ltd increased 8 yen to 253 yen and TDK gained 40 yen to 3,160 yen. Murata Manufacturing Co soared 290 yen or 6.4% to 4,850 yen and Meiko Electronics Co Ltd dropped 2% or 666 yen.

Shimano Inc closed unchanged at 5,690 yen.

Oki Electric Industry added 1 yen to 93 yen, Ricoh Co Ltd climbed 81 yen or 9.1% to 971 yen, Sony Corp increased 18 yen to 936 and Seiko Epson Corp gained 7 yen to 598 yen.

Canon Inc advanced 210 yen or 6.5% to 3,455 yen and Nikon jumped 83 yen to 2,523 yen.

Olympus Corp. climbed 47 yen to 1,532 yen and Nintendo Co. Ltd gained 10 yen to 8,970 yen, Fujitsu up 12 yen to 344 yen and Pioneer Corp. added 2 yen to 230 yen. Sharp Corp plummeted 20 yen or 6.1% to 307 yen. Panasonic Corp gained 15 yen to 501 yen.

Fanuc Corp. jumped 270 yen to 15,400 yen and Komatsu Ltd increased 67 yen to 2,106 yen. Hitachi Construction Machinery Co soared 81 yen or 5% to 1,688 yen.

Sumitomo Heavy increased 15 yen to 389 yen.

FamilyMart Co Ltd, the convenience chain operator gained 130 yen to 3,560 yen and Lawson climbed 170 yen to 5,730 yen. Ito En Ltd closed unchanged at 1,579 yen.

Seven & I Holdings Co increased 19 yen to 2,408 yen.

Fast Retailing Co. jumped 400 yen to 21,230 yen and J. Front Retailing Co. Ltd added 4 yen to 438 yen.

Mitsubishi UFJ Financial Group soared 25 yen or 6.1% to 435 yen and Sumitomo Mitsui Financial Group climbed 122 yen or 4.2% to 3,010 yen. Nomura Holdings, Inc jumped 19 yen or 4.7 to 420 yen.

Mitsui O.S.K. Lines, Ltd gained 3 yen to 229 yen and Nippon Yusen K.K. added 2 yen to 188 yen.