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Market Update

Nikkei in Tokyo Surges 2.5%, Consumer Prices Fall Again

Author: Nigel Thomas
Last Update: 9:01 AM ET January 25 2013

5:00 PM Tokyo Stocks in Japan surged after the yen declined and investors bid up stocks in anticipation of a change in leadership at the Bank of Japan. Consumer prices declined in December 0.2%, a seventh monthly decline in the last eight months. Prices fell 0.1% in 2012.

Markets in Japan continued to rise and extended gains to 26% in the last three months as the yen weakened.

Consumer prices in December declined 0.2% and for the year 2012 fell 0.1% offering more ammunition to politicians who demand higher inflation.

Bank of Japan Governor Masaaki Shirakawa said to reporters that it would massive efforts to achieve 2% inflation target announced earlier this week that are contributing to the factors discouraging investments from businesses.

The Nikkei 225 Stock Average climbed 269.31 or 2.5% to 10,890.18 and the broader Topix Index advanced 19.47 or 2.2% to 917.09.

For the week, the Nikkei edged up 0.1%, and increased for the eleventh week in a row.

The yen gained to 90.55 against one dollar after senior officials comments suggested that the government is not likely to interfere till the yen rises to 100.

Market is primed to go higher with optimism all around and brokers recommending stocks at this level despite a 3-month rally. The yen is likely to ease further as the central bank and the government work in concert to weaken the currency.

Stocks in Review

Electronics exporters gained after the yen declined for the third week in a row.

The electronics screen panel maker Nissha Printing Co soared 74 yen or 5.2% to 1,494 and the maker of printed circuit boards Ibiden gained 5 yen to 1,253 yen.

Nidec Corp, the maker of precision motors declined 0.9% to 5,220 yen after it lowered its net income outlook by 91%. Disco Corp gained 6% on higher preliminary third quarter earnings.

GS Yuasa closed unchanged at 314 yen, IHI gained 5 yen to 240 yen and Fuji Heavy Industries jumped 36 yen to 1,192 yen. All Nippon Airways Co rose 1 yen to 180 yen.

Yaskawa Electric Corporation increased 23 yen to 816 yen after the company reported operating profit below expectations.

Toyota Motor Corp. jumped 95 yen to 4,340 yen and Honda Motor Co. climbed 70 yen to 3,420 yen and Nissan Motor Co Ltd gained 22 yen to 874 yen. Mazda Motor Corp added 4 yen to 232 yen.

Nippon Steel rose 5 yen to 233 yen and JFE Holdings Inc advanced 59 yen to 1,747 yen.

Shimano Inc jumped 120 yen to 5,900 yen.

Sony Corp surged 101 yen or 8.5% to 1,290, Canon Inc jumped 50 yen to 3,350 yen and Nikon decreased 9 yen to 2,574 yen. TDK Corp slumped 20 yen to 3,130 yen.

Nintendo Co. Ltd climbed 200 yen to 9,260 yen and Pioneer Corp. surged 15 yen or 7.4% to 218 yen.

Fanuc Corp. advanced 670 yen or 4.8% to 14,570 yen and Komatsu Ltd jumped 49 yen to 2,386 yen. Hitachi Construction Machinery Co increased 55 yen to 1,954 yen.

Softbank Corp gained 72 yen to 3,025 yen.

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