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Market Update

BoJ Rejected Asset Purchase Program Expansion, Nikkei in 6-Day Rally

Author: Hiruki Nakamura
Last Update: 8:36 AM ET March 07 2013

5:00 PM Tokyo Bank of Japan left its bond buying program unchanged at the last meeting chaired by Governor Shirakawa. The yen eased and market indexes extended gains for the sixth day in a row.

Investors in Tokyo continued to take a positive view of the next nominee chief of Bank of Japan and bid up stocks.

The benchmark indexes gained and the Nikkei briefly traded above 12,000 and Topix stayed above 1,000. The indexes extended gains for the sixth session and real estate linked companies backed-off recent gains.

The Nikkei 225 Stock Average gained 35.81 or 0.3% to 11,968.08 and the broader Topix Index rose 1.13 to 1,004.35.

The yen resumed its slide against the dollar and eased to 94.12.

Bank of Japan rejected a proposal to accelerate bond buying by 8-to-1 vote at the final meeting chaired by Governor Masaaki Shirakawa.

The board voted against the proposal from Sayuri Shirai and left its asset purchase plan at 76 trillion yen or $810 billion however speculation rose that next presumed Governor Haruhiko Kuroda may accelerate bond purchase earlier than expected.

Separately, Bank of England, European Central Bank and Malaysian central bank are scheduled to decide monetary policy at meetings today. Indonesia left its key rate unchanged.

Stocks in Review

Sharp plunged 7.9% to 314 yen a day after the electronics maker confirmed that it plans to raise $110 million from Samsung. However, Deutsche Bank report suggested that Samsung has conditioned the investment with preferential shipment and discount prices on chips.

GS Yuasa soared 9% on the speculation that the U.S. regulators are close to approving the battery with a fix for Boeing 787 Dreamliner.

Toyota Motor Corp up 5 yen to 4,835 yen and Honda Motor Co. gained 20 yen to 3,565 yen and Nissan Motor Co Ltd slipped 13 yen to 934 yen. Yamaha Motor Co Ltd added 35 yen to 1,154 yen.

Nippon Steel fell 2 yen to 245 yen and JFE Holdings Inc decreased 18 yen to 1,886 yen.

Sony fell 11 yen to 1,451. Canon Inc slid 5 yen to 3,365 yen and Nikon closed unchanged at 2,044 yen. TDK Corp gained 5 yen to 3,200 yen.

Nintendo Co. Ltd soared 440 yen or 4.8% to 9,620 yen. Dainippon Screen Manufacturing Co rose 3 yen to 472 yen.

Fanuc Corp. jumped 60 yen to 14,040 yen and Komatsu Ltd dropped 69 yen to 2,206 yen. Hitachi Construction Machinery Co added 2 yen to 2,053 yen.

Softbank Corp declined 80 yen to 3,660 yen.

FamilyMart Co Ltd, the convenience chain operator increased 80 cents to 4,030 yen and Lawson climbed 70 yen to 6,980 yen. Ito En Ltd gained 10 yen to 1,980 yen.

Seven & I Holdings Co slumped 36 yen to 2,920 yen. Fast Retailing Co. decreased 250 yen to 28,690 yen and J. Front Retailing Co. Ltd declined 21 yen to 586 yen.

Fast Retailing and the crane maker Tadano Ltd were among the companies recommended by brokers.

Mitsubishi UFJ Financial Group fell 8 yen to 527 yen and Sumitomo Mitsui Financial Group dropped 95 yen to 3,755 yen. Dai-Ichi Life slid 0.7% to 124,500 yen. Nomura Holdings, Inc slipped 5 yen to 557 yen.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc