Nikkei Extends Weekly Gains to a New 15-Year High, Controversial Takata Fine

Hiruki Nakamura
23 Feb, 2015
New York City

Nikkei index in Tokyo edged up to a new 15-year high and investors shifted focus away from the euro zone. In an apparent politically motive move, the U.S. imposed $14,000 a day fine on Takata Corp. Resona Holdings plans to repay debt two years ahead of schedule to Japanese government backed fund.

[R]4:30 PM Tokyo – Nikkei index in Tokyo edged up to a new 15-year high and investors shifted focus away from the euro zone. In an apparent politically motive move, the U.S. imposed $14,000 a day fine on Takata Corp. Resona Holdings plans to repay debt two years ahead of schedule to Japanese government backed fund.[/R]

Market indexes in Japan closed higher and extended gains of the last week.

Talks between Greece and the euro zone ministers may continue for another week as both parties look for a compromise, but the prospect of a quick resolution look dim.

For now, Greece won concessions to lower its primary budget surplus target to 1.5% from 4.5% and agreed to monitoring of financial progress in implementing the austerity measures that the newly elected government had vowed to rollback.

Greece has agreed to submit a list of measures it plans to implement in the next four months to win its third bailout and a bridge loan of as much as 10 billion euros.

The Nikkei 225 Stock Average gained 134.62 or 0.7% to 18,466.92 and the broader Topix index increased 2.50 to 1,502.83.

The yen traded higher at 119.07 against one dollar.

Stocks in Review

Mitsubishi Chemical Holdings Corp climbed 3.2% to 645.90 yen after the Nikkei news reported diversified company plans to establish a new carbon fiber plant in the U.S. with an estimated cost of 40 billion yen commencing from 2018.

Resona Holdings Inc slid 0.4% to 664.60 yen after the financial service provider plans to pay-off the remaining 128 billion yen in public funds by this summer, two years ahead of schedule.

Skymark Airlines Inc tumbled 12.8% to 34 yen before the Monday deadline as ANA Holdings Inc is considering a potential investment in the struggling airline, including capital tie-up, joint purchase of jet fuel and code-sharing.

Takata Corporation dropped 2.6% to 1,332 yen after the automobile safety products maker faced heavy fine of $14,000 a day for “not cooperating” with the U.S. federal government until the company start to cooperate in to the long-running investigation of defective airbags.

Yukiguni Maitake Co., Ltd surged 36.2% to 282 yen after the Nikkei news reported the U.S.-based private investment group Bain Capital, LLC plans to launch a 9.5 billion yen takeover bid for Japanese mushroom producer.

The investment company offered at 245 yen per share or 18.4% premium to the closing price on Friday.