Nikkei at 5-Year High After 1.9% Surge, Yen Slides Near 100-Mark

Hiruki Nakamura
22 Apr, 2013
New York City

The Nikkei index in Tokyo jumped 1.9% to reach a new 5-year high and the yen dropped near 100-mark after G20 ministers avoided criticizing the latest monetary easing by the Bank of Japan. Investors are targeting the Nikkei at 14,000 before the year-end.

[R]5:30 PM Tokyo – The Nikkei index in Tokyo jumped 1.9% to reach a new 5-year high and the yen dropped near 100-mark after G20 ministers avoided criticizing the latest monetary easing by the Bank of Japan. Investors are targeting the Nikkei at 14,000 before the year-end.[/R]

Stocks in Tokyo accelerated the gains and the benchmark Nikkei index closed at a new 5-year high after real estate and financial services companies led the gainers.

The yen weakened to 99.61 against one dollar.

The Nikkei 225 Stock Average jumped 251.89 or 1.9% to 13,568.37 and the broader Topix Index increased 18.93 to 1,145.60.

Investors stepped up and added more equities as most companies are scheduled to release earnings in the next two weeks. Earnings estimates are based between 80 and 88 yen a dollar and 2014 earnings are expected at 90 yen to a dollar level, less than 100 mark estimated by most traders.

Stocks in the Nikkei index are trading at price-to-earnings ratio of 14.7, a level last seen in June 2010.

The real estate, banks and financial services companies led the gainers in trading today.

Stocks in Review

Mitsui Engineering & Shipbuilding Co Ltd soared 13% after a Nikkei newspaper report that the shipbuilding and heavy electric machinery maker Kawasaki Industries Ltd are exploring merger talks.

Kawasaki Heavy decreased 0.9%.

Nomura gained 2.4% to 759 yen and Dai-Ichi Life Insurance up 0.9%. Mitsui Fudosan slid 0.7% and Mitsubishi Estate Co fell 0.8%.

Toyota Motor Corp increased 70 yen to 5,550 yen and Honda Motor Co. climbed 65 yen to 3,915 yen and Nissan Motor Co Ltd jumped 27 yen to 1,052 yen. Yamaha Motor Co Ltd advanced 34 yen to 1,380 yen. Mitsubishi Motors Corp rose 5 yen to 107 yen.

Nippon Steel added 4 yen to 248 yen and JFE Holdings Inc gained 30 yen to 1,955 yen.

Sony increased 11 yen to 1,634. Canon Inc jumped 65 yen to 3,780 yen and Nikon gained 30 yen to 2,203 yen. TDK Corp climbed 95 yen to 3,370 yen. NEC rose 4 yen to 264 yen.

Nintendo Co. Ltd advanced 150 yen to 11,640 yen.

Fanuc Corp. added 90 yen to 15,170 yen and Komatsu Ltd up 20 yen to 2,508 yen. Hitachi Construction Machinery Co climbed 57 yen to 2,167 yen.

Softbank Corp gained 50 yen to 4,415 yen.

FamilyMart Co Ltd, the convenience chain operator increased 45 yen to 4,280 yen and Lawson rose 60 yen to 7,350 yen. Ito En Ltd added 22 yen to 2,489 yen.

Seven & I Holdings Co jumped 350 yen to 3,865 yen. Fast Retailing Co. climbed 800 yen to 34,300 yen and J. Front Retailing Co. Ltd advanced 26 yen to 833 yen.

Mitsubishi UFJ Financial Group rose 10 yen to 653 yen and Sumitomo Mitsui Financial Group up 50 yen to 4,445 yen. Dai-Ichi Life up 0.9% to 129,100 yen. Nomura Holdings, Inc gained 18 yen to 759 yen.