Japan Dissolves Parliament, Volatile Nikkei Surges 2%

Hiruki Nakamura
18 Nov, 2014
New York City

Market indexes in Japan jumped more than 2% after Prime Minster Shinzo Abe dissolved parliament. The yen dropped 0.9% against the dollar and the euro. GS Yuasa announced a new version of battery technology. Nichias Corp reported a surge in first-half earnings.

[R]4:30 PM Tokyo – Market indexes in Japan jumped more than 2% after Prime Minster Shinzo Abe dissolved parliament. The yen dropped 0.9% against the dollar and the euro. GS Yuasa announced a new version of battery technology. Nichias Corp reported a surge in first-half earnings.[/R]

Stocks in Tokyo jumped after Prime Minister Shinzo Abe announced to dissolve parliament on Nov 21.

The yen declined against most currencies as the prime minister delayed the implementation of higher sales tax after the election.

The Nikkei 225 Stock Average climbed 370.26 or 2.2% to 17,344.06 and the broader Topix index jumped 28.75 or 2.1% to 1,394.88.

The yen closed down 0.9% to close at 116.60 against one dollar.

The Bank of Japan is scheduled to wrap up its two-day meeting tomorrow, the meeting is the first gathering of central bank policy maker after the last month when the bank expanded its already large stimulus program.

Stocks in Review

GS Yuasa Corporation climbed 3.6% to 540 yen after the mobile batteries and power devices maker developed a next-generation lithium-ion battery with three times the capacity of existing batteries and will be available from 2020.

Ichigo Group Holdings Co Ltd gained 1.7% to 297 yen after the real estate developer agreed to acquire 11 offices and retail assets worth 26.7 billion yen.

Mitsubishi Corp increased 1.4% to 2,308 yen and Japan-based Jalux Inc signed an agreement to operate Mandalay International Airport in Myanmar for 30 years from 2015.

Mitsubishi Motors Corporation jumped 2.1% to 1,210 yen after the automobile maker forecasted operating profit for the current fiscal year from North American of 3 billion yen and operating loss in its domestic market.

Nichias Corporation rose 0.1% to 678 after the industrial products maker said net sales in the first-half ending in September jumped 3.3% to 139.51 billion yen from 135.10 billion yen a year ago period.

Net income in the period surged 38.7% to 9.83 billion yen compared to 7.09 billion yen and earnings per share increased to 32.95 yen from 23.76 yen in the same period a year ago.