Volatile Nikkei Rebounds 2.9%, Institutions Cut Stocks to Record Low

Hiruki Nakamura
27 Jun, 2013
New York City

Market indexes in Tokyo soared nearly 3% after Chinese credit market crunch eased. The yen rebounded above 98 against one dollar. Japanese institutional investors cut exposure to stocks record low in portfolio allocation in March. Real estate companies soared more than 8%.

[R]5:00 PM Tokyo – Market indexes in Tokyo soared nearly 3% after Chinese credit market crunch eased. The yen rebounded above 98 against one dollar. Japanese institutional investors cut exposure to stocks record low in portfolio allocation in March. Real estate companies soared more than 8%.[/R]

The volatile Japanese markets soared nearly 3%, first increase in four days and registered its best single day gain in 13 trading sessions.

The market volatility in Tokyo market has reached a new high in the last two weeks after retail investors sold stocks and today large institutional investors cut exposure to stocks.

Tokyo stocks have moved at least 1% in 50% of sessions in the last one month of trading after central bank offered stimulus but corporate Japan took a wait-and-see attitude and the yen has bounced between 93 and 98 yen against one dollar.

The Nikkei 225 Stock Average climbed 379.54 or 2.9% to 13,213.55 and the Topix jumped 29.55 or 2.8% to 1,098.83.

The yen closed in Tokyo trading at 98.15 against one dollar.

Real estate companies led the gainers in today’s trading and Mitsui Fudosan soared more than 8%.

Insurers, financial services company and trust banks trimmed their exposure to the record low of 28% to Japanese stocks at the end of March, Japan Exchange Group Inc said today.

The stock exposure was at a record high of 44.1% in 1988.

Stocks in Review

Toyota Motor Corp jumped 200 yen to 5,900 yen and Honda Motor Co. climbed 110 yen to 3,605 yen and Nissan Motor Co Ltd slid 1 yen to 971 yen.

Sony gained 34 yen to 2,035 yen. Canon Inc increased 35 yen to 3,220 yen and Nikon rose 16 yen to 2,300 yen.

Fanuc Corp advanced 200 yen to 14,000 yen Softbank Corp soared 230 yen or 4.2% to 5,650 yen.

Seven & I Holdings Co jumped 115 yen to 3,535 yen. Fast Retailing Co. climbed 900 to 31,500 yen.

Mitsubishi UFJ Financial Group added 10 yen to 588 yen and Sumitomo Mitsui Financial Group advanced 130 yen to 4,420 yen.

ReproCell Inc. after the stem-cell research company soared as high as 14,180 yen more than three times above the initial public offering price of 3,200 yen on the JASDAQ market.