For the 3rd straight day, Japanese stocks have surged now as the benchmark gauge Topix has hit the 1000 mark for the very 1st time since 15th April, 2010. The Bank of Japan nominee Haruhiko Kuroda has vowed to fight the Asian country’s deflation and this has helped the stocks big time on today. However, today, the trading volumes were low due to a system error that halted trading of the Nikkei 225 Average futures and options in Osaka.
Incidentally, the Topix saw a bit decline at a later point on today and finally closed at 992.25. Today’s gain for the benchmark gauge was of 0.8%. On the other hand, the Nikkei 225 increased by 0.4% and is at 11652.29 now. Due to the system error, the trading volume at Nikkei 225 was 21% less than the average of last 30 days.
The Executive Director of Investment Research Department of Nomura Securities Co., the biggest brokerage of Japan, Tamiji Shinada stated that Kuroda has made his stance clear and as a result, investors appreciated this resolve. Though the stance was pretty well known, this type of reaffirmation always helps in boosting the investors’ confidence. After digesting the comments, the Japanese stocks however pared the gains. The technical issue resulting into a system error also attributed to paring gains.
Among companies, Jowa Holdings saw its shares increasing by 11% and is currently at 2202 Yen per share. On the other hand, Nomura Real Estate Holdings increased by 10% and each share is now priced at 1985 Yen. The 2nd biggest lender of Japan by market value, Sumitomo Mitsui Financial Group saw its shares increasing by 1.7%. On the other hand, the Shinsei Bank Ltd. shares surged ahead by 6.4%.
Hitachi Zosen increased by 13% after Nikkei announced plans of selling the US vessels which convert natural gas into synthetic oils. East Japan Railway also surged ahead by 4.1% after NHK’s decision to resume the bullet train service to Akita concluding the safety checks.
The Nikkei Stock Average Volatility Index increased by 2.4% and is now at 27.14. This hints that over the next 30 days, the traders expect a swing of around 7.8% on the benchmark gauge. Total turnover on the Nikkei 225 was 1.38 trillion Yen, 9.2% less than the moving average of last 30 days.