8:00 PM Tokyo – Stocks in Tokyo rebounded and export sensitive sectors led the surge after the service sector in the U.S. expanded at a faster rate and Australia reported strong GDP growth. Nintendo edged lower after the latest product release disappointed analysts.
In Tokyo trading stocks rebounded and the Nikkei index advanced from the six-month low in yesterday’s close.
Investors were generally disappointed from the lack of specific steps after the G7 meeting but took note of the faster than anticipated expansion in the U.S. service sector and strong economic growth in Australia.
Service sector in May month expanded more than expected in the U.S. as retail and healthcare services showed strength. In Australia, a surprise strength in the household spending added to the robust spending in mining sector to lift the March quarter economic growth to the second highest in the last five years.
The Nikkei 225 Stock Average continue to gained 151.53 or 1.8% to 8,533.53 and fell to the six month low and the broader Topix index increased 10.32 or 1.5% to 718.56.
Kansai Electric Power Company, Inc decreased 33 yen to 1,059 yen and Tokyo Electric Power unchanged to 160 yen.
Chubu Electric Power slumped 4.9%, Shikoku Electric Power Co shrank 3.1% and Hokkaido Electric Power fell by 0.5%.
Exporters were ahead after the yen weakened and policy makers around world hold a flurry of meetings this week. Also, the central bank in the Europe is expected leave rates unchanged today.
Toyota Motor advanced 73 yen to 2,999 yen and Honda Motor Co. gained 68 yen to 2,485 yen and Nissan Motor Co Ltd increased 18 yen to 741 yen.
Sony Corp advanced 22 yen to close at 1,051 yen and rebounded from the 32-year low and Panasonic Corp closed up at 19 yen to 528 yen. Toshiba added 6 yen to 291 yen.
Panasonic is likely to make $630 million investment in the scandal plagued Olympus and become its largest stockholder.
Olympus Corp increased 7 yen to 1,338 yen, Nikon closed up at 73 yen to 2,181 yen and Fanuc Ltd advanced 190 yen to 13,410 yen. Hitachi Ltd gained 7 yen to 450 yen.
Canon Inc advanced 89 yen to 3,080 yen and said in a statement that it will spend as much as 50 billion yen to buy back up to 1.4% of its shares before the end of July.
Komatsu Ltd added 43 yen to 1,845 yen, Hitachi Construction Machinery Co increased 33 yen to 1,439 yen.
Inpex Corp increased 1.1% to 439,500 yen and Japan Petroleum Exploration Co. gained 99 yen to 3,020 yen.
Mitsui O.S.K. Lines, Ltd added 8 yen to 267 yen; Kawasaki Kisen Kaisha, Ltd unchanged to 141 yen and Nippon Yusen K.K. rose 4 yen to 203 yen.
Nippon Sheet Glass Co Ltd increased 8 yen to 81 yen after the Nikkei business daily reported that the company has no plans to raise capital and may slow production at some of its plants.
Asahi Glass Co Ltd gained 16 yen to 532 yen.
Fast Retailing Co. advanced 300 yen to 16,360 yen and J. Front Retailing Co. Ltd increased 12 yen to 374 yen.
Mitsubishi UFJ Financial Group added 8 yen to 345 yen and Sumitomo Mitsui Financial Group advanced 48 yen to 2,344 yen. Nomura Holdings, Inc closed up at 12 yen to 264 yen.