Nikkei Surges 2.7% in Thin Trading, Japan Tobacco Rises 5%

Hiruki Nakamura
17 Jun, 2013
New York City

Markets in Tokyo rebounded in thin trading after 4-week of losses. The Nikkei index recovered 2.7% from the second dip in the bear market in three weeks and the yen eased 0.6%. Japan Tobacco soared 5% after it reported rising domestic cigarettes in May.

[R]5:10 PM Tokyo – Markets in Tokyo rebounded in thin trading after 4-week of losses. The Nikkei index recovered 2.7% from the second dip in the bear market in three weeks and the yen eased 0.6%. Japan Tobacco soared 5% after it reported rising domestic cigarettes in May.[/R]

The Nikkei index rebounded from the second dip in the bear market amidst four weeks of losses in thin volume.

In the absence of domestic economic news, investors shifted attention to U.S. Federal Reserve meeting starting tomorrow and also announcement from the Group of 8 meeting in Northern Ireland.

The Nikkei 225 Stock Average jumped 346.60 or 2.7% to 13,033.12 and Topix index advanced 28.27 or 2.7% to 1,084.72.

The yen strengthened to 94.93 against one dollar in today’s trading and the currency is still below its 4-year peak of 103.73 on May 22.

Stocks in Review

Toyota Motor Corp gained 110 yen to 5,700 yen and Honda Motor Co. jumped 50 yen to 3,495 yen and Nissan Motor Co Ltd increased 12 yen to 998 yen.

Sony added 27 yen to 1,950. Canon Inc up 35 yen to 3,160 yen and Nikon climbed 35 yen to 2,434 yen.

Fanuc Corp advanced 240 yen to 14,630 yen Softbank Corp soared 210 or 4.2% to 5,250 yen.

Seven & I Holdings Co rose 55 yen to 3,415 yen. Fast Retailing Co. jumped 800 to 29,740 yen.

Mitsubishi UFJ Financial Group up 15 yen to 582 yen and Sumitomo Mitsui Financial Group gained 65 yen to 4,055 yen.

Japan Tobacco Inc. soared 165 yen or 5% to 3,455 yen after tobacco producer reported domestic cigarette sales in May rose 0.4% to 10.2 billion pieces.

Suntory Holdings Ltd. plans to price shares of its soft-drinks unit between 3,000 yen and 3,800 yen in initial public offer of this year, according to local media reports in Tokyo.

Tokuyama Corp soared 17% to 331 yen after the chemical maker agreed to acquire a controlling stake in a subsidiary of Swiss based Holcim Ltd.