Tokyo Markets Reopen with Nikkei Surging 2.8%

Nigel Thomas
04 Jan, 2013
New York City

Stocks in Tokyo played catch up with the rest of the Asian markets and the yen declined to a new low in nearly three years. The Nikkei surged 2.8% and the Topix added 3.3%. Autos and industrial machinery makers led the gainers.

[R]7:00 PM Tokyo – Stocks in Tokyo played catch up with the rest of the Asian markets and the yen declined to a new low in nearly three years. The Nikkei surged 2.8% and the Topix added 3.3%. Autos and industrial machinery makers led the gainers.[/R]

Stocks in Tokyo played catch up after markets reopened after four days of holiday. Market indexes caught up with other markets in Asia and after U.S. lawmakers averted higher spending cuts for two more months.

The Nikkei 225 Stock Average climbed 292.93 or 2.8% to 10,688.11 and the broader Topix Index jumped 28.71 or 3.3% to 888.51.

The Nikkei index gained 23% in 2012, first annual gain in three years after the index lost 17% in 2011 and fell 3% in 2010. But, the index is still 40% below the level it traded in 2006.

The yen edged lower to 87.31 against one dollar, near the 27-month low in 2011. The yen traded as high as 87.83 in the session against the dollar.

Stocks in Review

China linked stocks gained sharply after a private manufacturing survey showed a third month of expansion and service sector expanded in December according to a report released today.

Fanuc gained 4% and Komatsu jumped 5%.

Kansai Electric Power surged 65 yen or 7.2% to 972 yen and Tokyo Electric Power Co soared 13 yen or 6.3% to 219 yen.

Export sensitive stocks gained after the yen hit a two-and-half year low.

Toyota Motor Corp. climbed 255 yen or 6.4% to 4,260 yen and Honda Motor Co. jumped 125 yen or 4% to 3,270 yen and Nissan Motor Co Ltd increased 43 yen or 5.3% to 854 yen. Mazda Motor Corp advanced 11 yen or 6.3% 185 yen.

Nippon Steel gained 8 yen or 3.8% to 218 yen and JFE Holdings Inc increased 48 yen to 1,650 yen.

Shimano Inc jumped 170 yen to 5,690 yen.

Sony Corp gained 10 yen to 968, Canon Inc advanced 80 yen to 3,420 yen and Nikon climbed 130 yen or 5.2% to 2,656 yen.

Nintendo Co. Ltd increased 110 yen to 9,180 yen and Pioneer Corp. added 4 yen to 218 yen.

Fanuc Corp. jumped 620 yen to 16,540 yen and Komatsu Ltd advanced 106 yen or 4.8% to 2,290 yen. Hitachi Construction Machinery Co surged 90 yen or 5% to 1,882 yen.

FamilyMart Co Ltd, the convenience chain operator gained 15 yen to 3,570 yen and Lawson increased 110 yen to 5,980 yen. Ito En Ltd climbed 25 yen to 1,615 yen.

Seven & I Holdings Co jumped 54 yen to 2,491 yen. Fast Retailing Co. advanced 360 yen to 22,200 yen and J. Front Retailing Co. Ltd increased 11 yen to 488 yen.

Mitsubishi UFJ Financial Group soared 23 yen or 5% to 484 yen and Sumitomo Mitsui Financial Group climbed 110 yen to 3,225 yen. Nomura Holdings, Inc gained 21 yen or 4.2% to 524 yen.

Mitsui O.S.K. Lines, Ltd gained 5 yen to 259 yen and Nippon Yusen K.K. added 4 yen to 205 yen.