Sunday Election Hands Victory to Ruling Coalition in Japan

Hiruki Nakamura
22 Jul, 2013
New York City

In choppy trading Nikkei in TOkyo and yen firmed after the ruling coalition tightened its grip on both houses of parliament. Nippon Paint lifted its annual net income estimate by 21%. Mitsubishi Heavy declined after Southern California Edison alleged company provided defective generator.

[R]4:30 PM Tokyo – Stocks in Japan traded higher in choppy trading and the yen firmed after the ruling coalition tightened its grip on both houses of parliament. Nippon Paint lifted its annual net income estimate by 21%. Mitsubishi Heavy declined after Southern California Edison alleged company provided defective generator.[/R]

In Tokyo trading stocks and indexes traded choppy after the ruling coalition solidified its grip on both chambers of parliament after a resounding victory in Sunday’s election.

Investors had already factored win for the LDP and its partner and the largest party in Japan regained control of both houses for the first time since 2007.

Investors are hoping that Prime Minister Shinzo Abe will speed his reform plan and implement politically sensitive fundamental reform and liberalize several industries and labor markets.

The Nikkei 225 Stock Average rose 68.13 or 0.5% to 14,658.04 and the Topix gained 4.55 to 1,216.53.

The yen edged lower in Tokyo trading to close at 99.95 against one dollar and exporters rebounded.

Stocks in Review

Toyota Motor Corp added 20 yen to 6,490 yen and Honda Motor Co. gained 45 yen to 3,920 yen. Nissan Motor Co Ltd slid 8 yen to 1,113 yen.

Sony increased 31 yen to 2,219 yen. Canon Inc fell 5 yen to 3,380 yen and Nikon rose 32 yen to 2,298 yen.

Fanuc Corp edged up 30 yen to 14,970 yen and Softbank Corp up 60 yen to 6,490 yen.

Seven & I Holdings Co gained 40 yen to 3,980 yen and Fast Retailing Co. rose 300 to 36,450 yen.

Mitsubishi UFJ Financial Group slid 2 yen to 672 yen and Sumitomo Mitsui Financial Group fell 10 yen to 4,875 yen.

Nippon Paint Co., Ltd surged 6.6% to 1,318 after the coating materials maker lifted its net-income outlook for the year by 21% to 25.5 billion yen.

NEC Corporation climbed 4.2% to 246 yen after the company and Hewlett-Packard Co are in discussions that may lead to a joint venture or approach to selling servers together.

Mitsubishi Heavy declined 4% after Southern California Edison said the company should take responsibility for providing faulty steam generator.