Yen Pullback Lifts Nikkei Again, Seven & I Net Rises

Nigel Thomas
09 Jan, 2013
New York City

Two month old rally in Tokyo stocks continued after the yen edged lower and international investors added net positions to Japanese stocks. Education stocks soared on the hopes of a tax exemption for grandchildren schooling gift. Resource sector stocks led the gainers.

[R]7:00 PM Tokyo – Two month old rally in Tokyo stocks continued after the yen edged lower and international investors added net positions to Japanese stocks. Education stocks soared on the hopes of a tax exemption for grandchildren schooling gift. Resource sector stocks led the gainers.[/R]

Stocks in Tokyo traded higher and the yen resumed its slide as international investors added more positions to Japanese markets.

The rally in small and medium capitalized stocks also suggested a strong interest from retail investors.

The benchmark Nikkei index has surged 22% in the last two months of trading as the yen declined on the hopes that the Bank of Japan will expand its 101 trillion yen asset buying and lending program by at least 10 trillion yen.

The Nikkei 225 Stock Average climbed 70.51 or 0.7% to 10,578.57 and the broader Topix Index increased 7.17 to 879.05.

The yen dropped as much as 87.55 against one dollar and closed at 87.53.

Stocks in Review

Education linked companies soared after a report in Kyodo News said that the new government is looking to offer a tax exemption on education gifts to grandchildren for as much as 15 million yen.

Gakken, the text books and magazines publisher surged 34% to 317 yen. TAC Co., the professional certification classes operator surged 33% to 200 yen.

Toho Co., the operator of movie studio and theatre operator increased 4.6% to 1,596 yen after the company plans to buy back stocks and increase dividend.

Toyota Motor Corp. jumped 65 yen to 4,165 yen and Honda Motor Co. advanced 50 yen to 3,250 yen and Nissan Motor Co Ltd gained 5 yen to 847 yen. Mazda Motor Corp jumped 6 yen 177 yen.

Nippon Steel slipped 2 yen to 212 yen and JFE Holdings Inc added 4 yen to 1,548 yen.

Shimano Inc increased 40 yen to 5,730 yen.

Sony Corp slipped 4 yen to 936, Canon Inc declined 40 yen to 3,285 yen and Nikon climbed 25 yen to 2,592 yen.

Nintendo Co. Ltd dropped 150 yen to 8,540 yen and Pioneer Corp. gained 3 yen to 221 yen.

Fanuc Corp. increased 160 yen to 15,860 yen and Komatsu Ltd added 10 yen to 2,257 yen. Hitachi Construction Machinery Co jumped 32 yen to 1,847 yen.

Softbank Corp plummeted 65 yen to 3,040 yen.

FamilyMart Co Ltd, the convenience chain operator declined 160 yen to 3,610 yen and Lawson lowered 100 yen to 6,060 yen. Ito En Ltd slumped 13 yen to 1,649 yen.

Seven & I Holdings Co climbed 47 yen to 2,649 yen. Fast Retailing Co. dropped 90 yen to 22,820 yen and J. Front Retailing Co. Ltd gained 3 yen to 496 yen.

Seven & I reported 4.8% increase in operating profit in the latest quarter on the strength in its core 7-Eleven stores format.

Construction companies rose on the expectations that the new government will increase spending in the sector. Kajima Corp increased 1.8% and Taisei Corp added 2.1%.

Mitsubishi UFJ Financial Group increased 7 yen to 469 yen and Sumitomo Mitsui Financial Group jumped 35 yen to 3,185 yen.

Nomura Holdings, Inc gained 17 yen to 500 yen on the worries that the stock has run ahead of its fundamentals.

Mitsui O.S.K. Lines, Ltd added 4 yen to 264 yen and Nippon Yusen K.K. slid 1 yen to 203 yen.