Yen Drops, Tokyo Exporters Automakers Rise

Mayank Mehta
04 Jan, 2010
New York City

Stocks in Japan closed higher as the yen declined to a 4-month low. Exporters and automakers led the gainers. Toyota and Honda target small car market in India as the market is expected to expand to 3 million vehicles in five years. JAL surged after a bank doubled its credit limit to $2 billion.

[R]8:00 AM Tokyo, Japan – Stocks in Japan closed higher as the yen declined to a 4-month low. Exporters and automakers led the gainers. Toyota and Honda target small car market in India as the market is expected to expand to 3 million vehicles in five years. JAL surged after a bank doubled its credit limit to $2 billion.[/R]

Stocks in Tokyo traded higher on a moderate volume on the first day of trading. The yen traded at a four month low against the dollar and new trading system launched by the Tokyo Stock Exchange also bolstered the confidence.

The Nikkei 225 Index in Tokyo closed higher 108.35 or 1.03% to 10,654.79 and of the stocks in Nikkei 225 Stock Average, 189 increased, 27 declined and 9 closed unchanged.

The weakness in the dollar also supported a gain in exporters and automakers. Honda Motor Co increased 1.9% and Toyota Motor added 0.3% and Nissan Motor Co Ltd gained 0.7%.

Airlines gained after the Development Bank of Japan doubled its credit line for Japan Airlines Corp. All Nippon Airways Co. increased 5% after the Yomiuri Shimbun said that the airline may takeover international routes operated by JAL.

Nikkei Movers

Mizuho Financial Group, Inc led the decliners in the Nikkei 225 Stock Average with a loss of 2.4% followed by losses in Tokai Carbon Corp of 2.3%, in Pacific Metals Co., Ltd of 2.0%, in T&D Holdings, Inc 2.0% and in Nippon Meat Packers, Inc 1.5%.

Japan Airlines Corporation led gainers in the Nikkei 225 Stock Average with a rise of 33.3% followed by gains in Meidensha Corp 7.6%, in Oki Electric Industry Company, Limited of 5.1% and in All Nippon Airways Co., Ltd of 5.1%.

Other Movers

Advantest Corp., the memory chip testing equipment maker increased 3.3% to 2,485 yen.

Asahi Co added 2.1% to ¥1,417.00.

Fujikura Ltd the electric cable maker advanced 4.7% to ¥506.00.

GameOn Co., Ltd surged 17% to ¥86,000.00 after the online game service operator said that it has acquired the intellectual property rights of Massively Multi Player Online Role Playing Game from a Korea-based company on December 30.

Hitachi Cable, Ltd the cable maker increased 3.5% to ¥290.00.

Japan Airlines Corporation surged 31.3% to ¥88.00 after a state controlled bank increased its credit line to 200 billion yen or $2 billion.

Miyachi Corporation surged 15.8% to ¥730.00 after the laser-welder maker was upgraded to “buy” from “neutral” at Ichiyoshi Securities Co.

Osaki Electric Co., Ltd the maker of electric equipment surged 15.6% to ¥960.00.

Toko Electric Corp the maker of electric products for the power utility industry surged 17% to ¥548.00.

Yaskawa Electric Corporation the maker of servomotors and controllers rose 4.9% to ¥810.00.