Nikkei Soars 2.4% to 4-Year High on Region Trade Talks and BoJ Speculation

Hiruki Nakamura
25 Feb, 2013
New York City

The Nikkei in Tokyo soared on a speculation that the next appointee for the central bank leadership favors easier monetary policy. Prime Minister Abe showed readiness to enter Trans-Pacific Partnership trade talks.

[R]5:00 PM Tokyo – The Nikkei in Tokyo soared on a speculation that the next appointee for the central bank leadership favors easier monetary policy. Prime Minister Abe showed readiness to enter Trans-Pacific Partnership trade talks.[/R]

Stocks in Tokyo surged to a new high in the year and the benchmark index gained to a 4-1/2 year high on media speculation that the next governor nominee for the central bank favors easy monetary policy.

The Nikkei 225 Stock Average climbed 276.58 or 2.4% to 11,662.52 and the broader Topix Index jumped 17.22 to 980.70.

The yen eased to 94.75 against one dollar.

Indexes were higher after Prime Minister Shinzo Abe told reporters in Washington after the U.S.-Japan summit that he is prepared to enter Trans-Pacific Partnership trade talks.

Optimism ran high after several brokerage companies cited higher economic activities if Japan agrees to a regional trade agreement with the U.S.

Investors also bid up stocks on a media speculation that Asian Development Bank President Haruhiko Kuroda may be presented as a candidate for the Governor of Bank of Japan.

Kuroda is said to favor easier monetary policy steps to stimulate the economy.

Stocks in Review

Exporters closed higher after the yen dropped to a new low.

Toyota Motor Corp climbed 65 yen to 4,790 yen and Honda Motor Co. jumped 55 yen to 3,525 yen and Nissan Motor Co Ltd added 1 yen to 940 yen.

Mazda Motor Corp gained 9 yen to 280 yen. Yamaha Motor Co Ltd soared 43 yen or 4.1% to 1,097 yen.

Shipping companies increased after A.P Moeller-Maersk A/S, the largest container port terminal operator and shipper estimated higher demand for container transportation and forecasted increase in earnings in the year.

Nippon Steel increased 11 yen to 259 yen and JFE Holdings Inc surged 166 yen or 8.6% to 2,105 yen.

Sony jumped 44 yen to 1,340. Canon Inc climbed 60 yen to 3,375 yen and Nikon gained 35 yen to 2,152 yen. TDK Corp added 15 yen to 3,260 yen.

Nintendo Co. Ltd advanced 140 yen to 9,040 yen. Dainippon Screen Manufacturing Co rose 2 yen to 477 yen.

Fanuc Corp. climbed 90 yen to 14,550 yen and Komatsu Ltd slipped 9 yen to 2,341 yen. Hitachi Construction Machinery Co increased 7 yen to 2,162 yen.

Softbank Corp jumped 130 yen to 3,475 yen.

FamilyMart Co Ltd, the convenience chain operator slumped 15 yen to 4,000 yen and Lawson lowered 20 yen to 7,160 yen. Ito En Ltd gained 6 yen to 1,876 yen.

Seven & I Holdings Co slid 4 yen to 2,793 yen. Fast Retailing Co. climbed 830 yen to 26,000 yen and J. Front Retailing Co. Ltd increased 10 yen to 568 yen.

Mitsubishi UFJ Financial Group gained 14 yen to 527 yen and Sumitomo Mitsui Financial Group jumped 60 yen to 3,755 yen. Dai-Ichi Life rose 1.5% to 133,200 yen. Nomura Holdings, Inc slid 2 yen to 531 yen.