Nikkei Nears 4-Year High as Yen Drops to 3-Year Low

Hiruki Nakamura
18 Feb, 2013
New York City

The Nikkei index in Tokyo soared 2.1% and the yen resumed its slide to drop near a 33-month low. G20 policymakers issued a broad statement that focus on the region and avoided a direct criticism of aggressive monetary easing by Japan.

[R]5:00 PM Tokyo – The Nikkei index in Tokyo soared 2.1% and the yen resumed its slide to drop near a 33-month low. G20 policymakers issued a broad statement that focus on the region and avoided a direct criticism of aggressive monetary easing by Japan.[/R]

Investors bid up stocks in Tokyo trading after G20 policy makers avoided direct criticism of Japan’s latest monetary easing.

Stocks surged in the morning after a weekend meeting of G20 policymakers issued a statement that did not single out Japan. The statement focused on the need for price stability and economic growth and urged other countries to avoid competitive devaluation.

The statement was widely expected and the lack of criticism of Japan only bolstered traders to drive the currency lower. However, China, Taiwan, South Korea and the euro zone may be forced to revalue currencies.

The makers of electronics, automobiles and pharmaceuticals are in direct competition with Japanese makers and may be forced to meet lower prices.

The Nikkei 225 Stock Average jumped 234.04 or 2.1% to 11,407.87 and the broader Topix Index climbed 20.28 or 2.2% to 962.69.

The yen resumed its slide and fell to 94.15 against one dollar.

Stocks in Review

The yen weakness lifted the makers of automobiles and electronics.

Toyota Motor Corp. climbed 60 yen to 4,785 yen and Honda Motor Co. jumped 50 yen to 3,505 yen and Nissan Motor Co Ltd increased 18 yen to 950 yen. Mazda Motor Corp slid 1 yen to 275 yen. Yamaha Motor Co Ltd slipped 2 yen to 1,062 yen.

Nippon Steel gained 8 yen to 260 yen and JFE Holdings Inc slumped 29 yen to 2,054 yen.

Sony increased 16 yen to 1,329. Canon Inc advanced 45 yen to 3,310 yen and Nikon jumped 23 yen to 2,141 yen. TDK Corp climbed 65 yen to 3,340 yen.

Nintendo Co. Ltd soared 370 yen or 4.4% to 8,810 yen.

Dainippon Screen Manufacturing Co soared 11% on a recommendation of stock from Goldman Sachs.

Fanuc Corp. jumped 310 yen to 15,150 yen and Komatsu Ltd rose 18 yen to 2,416 yen. Hitachi Construction Machinery Co increased 37 yen to 2,166 yen.

Sumida Corp declined 5.5% to 522 yen after the coil maker estimated earnings in full-year ending in December to drop 28%.

Asahi Glass gained 8 yen to 645 yen. Softbank Corp added 25 yen to 3,450 yen.

FamilyMart Co Ltd, the convenience chain operator closed unchanged at 3,840 yen and Lawson climbed 60 yen to 6,930 yen. Ito En Ltd gained 38 yen to 1,817 yen.

Fast Retailing gained 2% to 25,390 yen after the company was speculated to target Gap Inc according to a report on CNBC.

Seven & I Holdings Co increased 45 yen to 2,801 yen. Fast Retailing Co. climbed 530 yen to 25,390 yen and J. Front Retailing Co. Ltd advanced 23 yen or 4.4% to 543 yen.

Mitsubishi UFJ Financial Group surged 25 yen or 4.9 to 533 yen and Sumitomo Mitsui Financial Group soared 180 yen or 4.9% to 3,820 yen. Dai-Ichi Life gained 3.5% to 134,900 yen. Nomura Holdings, Inc increased 13 yen to 541 yen.