Tokyo Index Surges 2.5% on Weaker Yen

Mayank Mehta
11 Dec, 2009
New York City

The benchmark index in Tokyo surged 2.5% as the yen fell against the dollar. Automakers, electronics exporters and heavy machinery makers rallied. Banks declined. The consumer confidence index declined in November as respondents worry about job loss.

[R]8:00 PM Tokyo, Japan – The benchmark index in Tokyo surged 2.5% as the yen fell against the dollar. Automakers, electronics exporters and heavy machinery makers rallied. Banks declined. The consumer confidence index declined in November as respondents worry about job loss.[/R]

Stocks in Asia and Australia rallied after China reported a sharp rise in industrial production and steady imports of commodities and rising domestic retail sales in November.

The latest economic data bolstered the optimism that Chinese consumers are playing a key role in lifting global economic outlook. Commodities and metals increased.

The Nikkei 225 Index in Tokyo closed higher 245.05 or 2.48% to 10,107.87 and of the stocks in Nikkei 225 index, 200 increased, 17 declined and 8 were unchanged.

Consumer confidence index in Japan declined to 39.5 in November from 40.5 in October according to the latest data released by the Cabinet Office. Consumers are facing declining wages and worried of job loss despite the Prime Minister Hatoyama government’s additional stimulus of 7.2 trillion yen.

The survey also indicated that consumers are worried that their incomes are likely to fall and showed less willingness to purchase durable goods.

Nikkei Movers

Sanyo Electric Co., Ltd led the decliners in the Nikkei 225 index with a loss of 2.2% followed by losses in Sumitomo Mitsui Financial Group, Inc of 1.2%, in Japan Airlines Corporation of 1.0%, in J Front Retailing Co Ltd 1.0% and in Mitsubishi UFJ Financial Group, Inc 0.8%.

Taiyo Yuden Co., Ltd led gainers in the S&P ASX 200 index with a rise of 8.5% followed by gains in JTekt Corporation 6.7%, in Minebea Co Ltd of 6.7% and in Kawasaki Heavy Industries, Ltd of 6.3%.

Other Movers

Canon Inc gained 1% to ¥3,750.00 after the yen weakened and exporters rallied in the session. Automakers, electronics devices exporters and trading companies led the gainers.

JText Corporation increased 6.7% to ¥1,099.00 and NTN Corp added 4.7% to 402 yen after Credit Suisse analysts lifted investment rating on the auto parts maker. The rating revision was first reported on Bloomberg news.

Kawasaki Heavy Industries, Ltd the transport and industrial machinery maker advanced 6.3% to ¥235.00.

Nissan Motor Co Ltd added 3.8% to ¥728.00 as the company and other automakers rallied on the decline in the yen.

Sanyo Electric Co., Ltd declined 2.2% to ¥172.00.

Sumitomo Mitsui Financial Group, Inc fell 1.2% to ¥2,710.00 after banks declined in Tokyo trading.

Tensho Electric Industries Co., Ltd the manufacturing company closed unchanged at ¥101.00.

Toyota Motor Corporation climbed 2.7% to ¥3,750.00 and the automaker said the U.S. government is investigating complaints of engine stall in 2006 Toyota Corolla and Matrix vehicles.