5:10 PM Tokyo – Stocks in Japan recovered after the Nikkei index fell to a bear market territory with a sharp drop of 20% from a peak on May 22. Nikkei gained 1.9% and the broader Topix increased 1.2%. The yen closed near 95 against one dollar.
Market indexes in Tokyo rebounded from the sharp plunge in yesterday’s trading. Several brokerage firms including Nomura estimated market rebound to a new high in the next two quarters and estimated higher corporate profit and lower yen.
However, corporate Japan is still on the sideline and skeptical of “Kuroda-Abenomics” and the government efforts to revive inflation.
The Nikkei 225 Stock Average climbed 241.14 or 1.9% to 12,686.52 and Topix index jumped 12.28 or 1.2% to 1,056.45. In the early hours of trading, the Nikkei soared as much as 3.6%.
For the week, Nikkei 225 slipped 1.5%.
The yen eased 94.97 against one dollar in today’s trading. The yen strengthened to the level last seen in April and well below its 4-year peak of 103.73 on May 22.
Stocks in Review
Toyota Motor Corp closed unchanged at 5,590 yen and Honda Motor Co. climbed 25 yen to 3,445 yen and Nissan Motor Co Ltd rose 7 yen to 986 yen.
Sony fell 7 yen to 1,923. Canon Inc closed unchanged at 3,125 yen and Nikon slid 8 yen to 2,381 yen.
Fanuc Corp climbed 220 yen to 14,390 yen Softbank Corp jumped 60 to 5,040 yen.
Seven & I Holdings Co soared 145 yen or 4.5% to 3,360 yen. Fast Retailing Co. gained 390 to 28,940 yen.
Mitsubishi UFJ Financial Group down 10 yen to 567 yen and Sumitomo Mitsui Financial Group lowered 10 yen to 3,990 yen.
Kawasaki Heavy Industries, Ltd. soared 4.3% to 319 yen after the heavy equipment maker ended merger talks with shipbuilding rival Mitsui Engineering & Shipbuilding Co Ltd and fired the president Satoshi Hasegawa.
According to a news release, Hasegawa would be replaced by Vice President Shigeru Murayama.
Separately, the company revised its April 22 filing with the Tokyo Stock Exchange and reversed its earlier statement that it was not discussing merger with Mitsui Engineering. The stock exchange regulator has requested more information from the company.
Zappallas Inc dropped 11% to 68300 yen after the mobile content maker lowered its annual net income forecast by 32%.