Nikkei Up 1.5% as Yen Drops to 20-Month Low on New Prime Minister

Nigel Thomas
26 Dec, 2012
New York City

The yen dropped to a 20-month low and Shinzo Abe took the office of prime minister. Abe promised bold actions and demanded more actions from Bank of Japan. The yen dropped to a low last seen in 2011.

[R]7:00 PM Tokyo – The yen dropped to a 20-month low and Shinzo Abe took the office of prime minister. Abe promised bold actions and demanded more actions from Bank of Japan. The yen dropped to a low last seen in 2011.[/R]

Stocks in Tokyo sold off after markets in Asia reacted first to the failure of U.S. lawmakers to resolve budget negotiations that could raise the prospect of a recession.

Resource stocks led the decliners and exporters fell after the yen edged higher and worries of the growing prospect of automatic tax increase and spending cuts.

Investors took an opportunity to sell stocks after the Nikkei index rallied more than 15% in the last five weeks.

The Nikkei 225 Stock Average advanced 150.24 or 1.5% to 10,230.36 and the broader Topix Index gained 9.70 to 847.71.

The yen edged lower to 85.48 against one dollar, near the 20-month low in 2011.

Stocks in Review

Kansai Electric Power slipped 10 yen to 967 yen and Tokyo Electric Power Co slid 1 yen to 228 yen. Shikoku Electric decreased 8 yen to 1,443 yen and Chubu Electric Power Co slumped 8 yen to 1,169 yen.

Toyota Motor Corporation, the Japanese automaker estimated 2013 worldwide sales to increase 2% to 9.91 million units but sales in Japan to drop 15% to 2.04 million units.

Toyota Motor Corp. climbed 50 yen to 3,830 yen and Honda Motor Co. jumped 30 yen to 3,060 yen and Nissan Motor Co Ltd increased 16 yen to 782 yen. Mazda Motor Corp gained 5 yen 155 yen. Isuzu Motors Ltd added 5 yen to 487 yen.

Nippon Steel advanced 7 yen to 210 yen and JFE Holdings Inc jumped 65 yen to 1,584 yen. Tokyo Steel Manufacturing surged 22 yen or 5.8% to 403 yen.

All Nippon Airways closed unchanged at 176 yen and. JAL gained 15 yen to 3,715 yen.

Fujikura Ltd increased 8 yen to 255 yen and TDK climbed 143 yen or 4.8% to 3,100 yen. Murata Manufacturing Co jumped 105 yen to 4,795 yen and Meiko Electronics Co Ltd dropped 2.3% or 677 yen.

Shimano Inc increased 10 yen to 5,700 yen.

Oki Electric Industry advanced 4 yen or 4.4% to 94 yen, Ricoh Co Ltd closed unchanged at 907 yen, Sony Corp jumped 36 yen to 943 and Seiko Epson Corp climbed 21 yen to 687 yen.

Canon Inc declined 65 yen to 3,310 yen and Nikon gained 25 yen to 2,474 yen.

Olympus Corp. advanced 67 yen or 4.2% to 1,657 yen.

Nintendo Co. Ltd dropped 50 yen to 8,590 yen, Fujitsu jumped 14 yen or 4.1% to 359 yen and Pioneer Corp. increased 7 yen to 217 yen.

Sharp Corp surged 42 yen or 15.4% to 315 yen. Panasonic Corp increased 14 yen to 510 yen.

Fanuc Corp. climbed 410 yen to 15,560 yen and Komatsu Ltd gained 30 yen to 2,127 yen. Hitachi Construction Machinery Co jumped 43 yen to 1,768 yen.

Sumitomo Heavy increased 14 yen to 400 yen.

FamilyMart Co Ltd, the convenience chain operator slipped 10 yen to 3,555 yen and Lawson decreased 10 yen to 5,850 yen. Ito En Ltd lowered 5 yen to 1,581 yen.

Seven & I Holdings Co jumped 30 yen to 2,406 yen.

Fast Retailing Co. advanced 400 yen to 21,170 yen and J. Front Retailing Co. Ltd added 16 yen to 450 yen.

Mitsubishi UFJ Financial Group rose 3 yen to 449 yen and Sumitomo Mitsui Financial Group increased 25 yen to 3,085 yen. Nomura Holdings, Inc climbed 13 yen to 471 yen.

Mitsui O.S.K. Lines, Ltd soared 17 yen or 7.5% to 245 yen and Nippon Yusen K.K. jumped 9 yen or 4.8% to 196 yen.