Japan Stocks Rise to 3-Month High; JSW, Sumitomo Metals Up

Marcus Jacob
08 Nov, 2010
New York City

Stocks in Japan closed higher and touched 3-month high as the yen declined. The better than expected U.S. jobs report lifted sentiment. Japan Steel Works Ltd and Sumitomo Metals Mining Co revised annual net outlook higher.

[R]5:30 PM Tokyo – Stocks in Japan closed higher and touched 3-month high as the yen declined. The better than expected U.S. jobs report lifted sentiment. Japan Steel Works Ltd and Sumitomo Metals Mining Co revised annual net outlook higher.[/R]

Stocks in Tokyo traded higher and reached to a 3-month high and the yen hovered near the recent highs. The release of better than expected U.S. jobs reports lifted the trading sentiment in Japan and in Asia.

Nikkei 225 Stock Average increased 1.1% to 9.732.92 and gained the Topix gained 0.8% to 841.74. The yen declined against the dollar to 81.405 from 80.8001.

U.S. added 151,000 jobs in October as net additions in healthcare, construction and retail sectors helped the net new job creations. However, unemployment in the month hovered at 9.6%, the same it has been for the last six months.

Skymark Airlines Inc, the Japan based discount carrier is in talks to acquire four A380 superjumbo aircrafts as it expands the service on domestic routes. The all economy carrier has been adding staff and hiring pilots after the Japan Airlines Corp filed for bankruptcy protection in January.

Keeping the thee-month trend intact, resource and commodities linked stocks and exporters led the gainers.

Komatsu Ltd increased 4.7% to 2,274 yen and Fanuc Ltd gained 2.1% to 12,415 yen. Nissan Motor Co added 2% to 778 yen and Honda Motor Co increased 3.2% to 2,971 yen.

JX Holdings soared 6.2% to 525 yen after the largest oil refiner and copper smelter in Japan raised its full year earnings outlook.

Resona Holdings Inc dropped 8.5% to 465 yen after the troubled lender confirmed that it plans to raise as much as 600 billion yen to repay 900 billion in loans to Japanese government.

Other banks also declined on the worries that more banks will need to raise capital to support tighter international reserve requirements. Gumma Bank Ltd declined 2.7% and Bank of Yokohama fell 2.1%.

Credit Saison Co increased 5% to 1,235 yen after the credit card lender and processor lifted net income estimate by 33%.

Citizen Holdings Co increased 3% to 512 yen after the watchmaker said fist half net surged to 3.69 billion yen and the company lowered full year net 8% to 11.5 billion.

Dentsu Inc increased 2.6% to 2055 yen after the largest advertising company in Japan lowered its annual net by nearly 9%.

Japan Steel Works Ltd increased 1.6% to 833 yen after the company lifted its outlook by 11% to annual net income of 15.5 billion yen.

Sumitomo Metals Mining Co increased 2.2% to 1,400 yen after the largest nickel producer revised its annual net outlook 3% to 69 billion yen and net for the six months ended September doubled from a year ago quarter to 35.5 billion yen.