Tokyo markets up ahead of BofJ decision

The Nikkei 225 managed to add 0.3 percent to 16,962.11 on Monday, its highest close in seven months, and the Topix index gained 0.5 percent to 1,665.32 on Monday as investors waited for Tuesday’s decision by the Bank of Japan on interest rates.

In the utilities sector, Tokyo Electric Power was 2.1 percent higher to ¥3,800 as investors used it as a safe place to put their money while they wait to see what will happen with interest rates. Utilities are seen as safe because demand isn’t tied to how the rest of the economy is performing.

Export-focused stocks also saw gains on the day after good news on consumer prices emerged from the United States on Friday. In the automobile manufacturing sector, Honda added 2.6 percent to ¥4,360. Meanwhile, Sony gained 2.2 percent to ¥5,160.

Toshiba was up 1.3 percent to ¥780 on the news that its Westinghouse division has been awarded a contract to build four nuclear reactors in China.

Loser on the session included Japan Tobacco, which dropped 5.2 percent to ¥566,000 after last weeks gains after it said it will bid for UK tobacco company Gallaher. Also dropping was securities company Nikko Cordial, which fell 4.8 percent to ¥1,419 after weekend reports that the Japanese Securities and Exchange Surveillance Commission is looking at the company for possible manipulation of its earnings in its fiscal year 2004.

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