5:00 PM Tokyo – Tokyo stocks halted a 3-day rally as investors feared that the market gains of the last three months may have extended stocks. Fast Retailing increased after same store sales at Uniqlo jumped 9.6% in February.
In Tokyo trading stocks halted a 3-day rally after investors grew worried that the recent market gains may have lifted stocks ahead of fundamentals.
Investors are hoping that the next governor of Bank of Japan will pursue a methodical and aggressive monetary easing to support the rise in asset prices and the government will keep the yen in check.
Traders are expecting the central bank to reflate the economy and lift asset prices more and benefit from investing in banks and real estate linked companies and in addition exporters to gain because of the weaker yen.
The Nikkei 225 Stock Average gained 31.16 or 0.3% to 11,683.45 and the broader Topix Index slid 3.63 or 0.4% to 988.62.
The yen resumed its slide against the dollar and eased to 93.17.
China kept its 2013 economic growth target at 7.5% and set inflation goal of 3.5% according to a report released by the Premier Wen Jiabao’s office ahead of the annual meeting of the National People’s Congress today.
Stocks in Review
Paper and pulp companies declined after Nippon Paper announced a price increase for all shipments from April 21. Oji Holdings dropped 8% to 331 yen.
Toyota Motor Corp fell 10 yen to 4,735 yen and Honda Motor Co. closed unchanged at 3,475 yen and Nissan Motor Co Ltd lowered 2 yen to 943 yen. Yamaha Motor Co Ltd increased 15 yen to 1,115 yen.
Nippon Steel down 4 yen to 247 yen and JFE Holdings Inc dropped 58 yen to 1,887 yen.
Sony slid 13 yen to 1,425. Canon Inc fell 5 yen to 3,345 yen and Nikon gained 8 yen to 2,024 yen. TDK Corp added 5 yen to 3,190 yen.
Nintendo Co. Ltd jumped 40 yen to 9,250 yen. Dainippon Screen Manufacturing Co declined 12 yen to 431 yen.
Fanuc Corp. closed unchanged at 14,000 yen and Komatsu Ltd slid 1 yen to 2,260 yen. Hitachi Construction Machinery Co gained 21 yen to 2,033 yen.
Softbank Corp added 5 yen to 3,500 yen.
FamilyMart Co Ltd, the convenience chain operator declined 60 cents to 3,915 yen and Lawson slumped 150 yen to 6,870 yen. Ito En Ltd climbed 39 yen to 1,972 yen.
Seven & I Holdings Co added 4 yen to 2,799 yen. Fast Retailing Co. surged 1,400 yen or 5.5% to 26,770 yen and J. Front Retailing Co. Ltd slipped 8 yen to 577 yen.
Same store sales at Uniqlo Japan locations soared 9.6% in February from a year ago month.
Mitsubishi UFJ Financial Group fell 4 yen to 527 yen and Sumitomo Mitsui Financial Group lowered 20 yen to 3,815 yen. Dai-Ichi Life plunged 5% to 124,300 yen. Nomura Holdings, Inc closed unchanged at 554 yen.