Stocks in Japan Surge as the Yen Weakens

Mayank Mehta
03 Dec, 2009
New York City

Stocks in Japan surged after the yen weakened. The yen declined less than 0.5% from its 14-year high but traded near its recent highs for the year. Capital spending at Japanese companies in the quarter to September decreased 25.7% from a year ago.

[R]8:00 AM Tokyo – Stocks in Japan surged after the yen weakened. The yen declined less than 0.5% from its 14-year high but traded near its recent highs for the year. Capital spending at Japanese companies in the quarter to September decreased 25.7% from a year ago.[/R]

The Nikkei 225 Index in Tokyo closed higher 368.73 or 3.84% to 9,977.67 after automakers and exporters led the gainers.

The yen decreased against the dollar and the yen and lifted the exporters and automakers and trading companies stocks.

The Finance Ministry said that capital spending at private companies declined 25.7% in the three months to September.

Sony Corp increased 6% to 2,475 yen, Toyota Corp increased 5.6% to 3,760 yen and Canon Inc added 5.4% to 3,530 yen.

Mitsubishi Motors surged 13% to 135 yen after the Nikkei newspaper reported that the company is in talks with Peugeot Citroen SA of France that may take majority stake in the company and enter into technical collaboration.

The news also lifted the parent Mitsubishi Heavy Industries Ltd 4.7% to 312 yen.

Japan Tobacco Inc surged 9.8% to 282,200 yen after the Mainichi newspaper reported that the government expects to impose no more than 3 yen a cigarette additional tax compared to 10 yen proposed by the Health Ministry.

Tokyo Electron Ltd increased 7.1% to 5,410 yen after the company Chairman Higashi indicated higher than expected orders in the current quarter as noted on the Bloomberg News.

Nikkei 200 Average Movers

Taiheiyo Cement Corporation led the decliners in the Nikkei 225 index of 0.9% followed by losses in Fast Retailing Co., Ltd. of 0.9%.

Mitsubishi Motors Corporation led gainers in the Nikkei 225 index with a rise of 12.6% followed by gains Nippon Sheet Glass Company, Limited of 10.3%, in Japan Tobacco Inc. of 9.6%, in Taiyo Yuden Co., Ltd. of 8.2%, and in Nitto Boseki Co., Ltd. of 7.9%.