Yen Advances as China Pumps More Liquidity

Hiruki Nakamura
05 Jan, 2016
New York City

Nikkei in Tokyo eased and the yen advanced as volatility gripped markets in Shanghai, Tokyo and Mumbai. Crude oil drifted lower and the yen gained after central bank in China pumped additional liquidity to financial system.

[R]4:30 PM Tokyo – Nikkei in Tokyo eased and the yen advanced as volatility gripped markets in Shanghai, Tokyo and Mumbai. Crude oil drifted lower and the yen gained after central bank in China pumped additional liquidity to financial system.[/R]

Stocks in Tokyo traded lower for the second day this week and investors remained on the edge after People’s Bank of China pumped additional $20 billion to financial system.

However, markets in Shanghai remained weak and continued to drift lower a day after plunging 7% and sparking a global sell-off.

The Nikkei 225 Stock Average fell 76.98 or 0.4% to 18,374 and the broader Topix index slid 4.96 to 1,504.71.

The yen increased against the U.S. dollar to 119.53.

Stocks in Review

ABC-Mart Inc fell 0.2% to 6,410 yen after the brand goods retailer said total sales in December soared 10.3% from a year ago month following an increase to 9.5% in November.

All Nippon Airways plans to purchase three Airbus A 380 planes for 150 billion yen or $1.23 billion and introduce double-decker planes for travel to Hawaii and other overseas destinations.

Kaneko Seeds Co., Ltd slipped 1.4% to 1,183 yen after the agricultural products provider said net sales in the first-half ending in November rose 0.3% from a year ago to 24.88 billion yen.

Net income in the period declined 4.8% to 354 million yen compared to 372 million yen and earnings per share fell to 30.16 yen from 31.68 yen in the same period a year ago.

For the year, the company forecasted net sales to increase 0.4% to 59 billion yen and drop 12.2% to 1.20 billion yen.

Nissan Motor Co Ltd decreased 0.9% to 1,225 yen and the automobile maker said it plans to invest $185 million to produce a new four-wheel-drive passenger car model in Brazil.