Japan Review – Nikkei Rebounded on Yen Retreat

Mitsubishi Estate jumped 5.45%, Daikin Industries advanced 3.83%, and Nissan Motor gained 2.78% as Tokyo shares rallied on Thursday after losing over 200 points on Wednesday. Yen’s retreat against the greenback back above 86.00 yen was the major driver of Nikkei’s rebound, along with yesterday’s Toyota’s rosy earnings forecast which was announced after the market closed. US data on employment and service sector also gave boost to the index. Domestic factor was the report that office vacancy rates fell in central Tokyo, the first time since more than two years ago, prompting a rally in Mitsubishi Estate.

Nikon reported net profit of 8.15 billion yen in the quarter ended June 30, reversing a loss of 4 billion yen in the prior year. It beat consensus of 3.1 billion yen. For the 6-month ending September, net income is seen at 9 billion yen, more than twice of prior estimate of 4 billion yen. Nikon ended up 1.5% at 1,512 yen.

Another news came from Nippon Steel as it acquired 10% of Foxleigh Metallurgical Coal Mine from Itochu. Shares if Nippon Steel rose 1.4% to 298 yen at the close.

Nikkei ended at 9,653.90 or 1.7% higher.