Japan Stocks Advance; Factory Orders Drop 8.2%

Nigel Thomas
08 Sep, 2011
New York City

Stocks in Japan gained for the second day in a row as investors focused on the measures to improve global economic scenario. Factory order declined 8.2% in July after rising 7.7% in June. Mining and resources linked companies closed higher.

[R]6:00 PM Tokyo – Stocks in Japan gained for the second day in a row as investors focused on the measures to improve global economic scenario. Factory order declined 8.2% in July after rising 7.7% in June. Mining and resources linked companies closed higher.[/R]

Stocks in Japan rose for the second day in a row as investors bid up exporters and banks. The market sentiment improved after the Senate in Italy approved the government’s austerity plan of 54 billion euros and focused on lowering the deficit.

The Nikkei 225 Stock Average rose 0.3% 8,793.12 and the broader Topix index added 0.5% to 757.41.

The yen edged lower to 77.35 from 77.11 against one dollar.

Factory Orders declined 8.2% in July from previous month according to the data released by the Cabinet Office. The orders increased 7.7% in June. Orders are a leading indicator of capital spending in the next three or six months.

Stock Movers

Elpida Memory fell 2.4% to 487 yen and Advantest added 0.7% to 928 yen. Renesas Electronics increased 1 yen to 491 yen.

Mitsubishi UFJ Financial Group fell 0.6% to 327 yen and Sumitomo Mitsui Financial Group decreased 0.7% to 2,110 yen. Mizuho Financial Group closed unchanged at 111 yen.

Inpex Corp increased 4.5% to 492,500 yen and Japan Petroleum Exploration Co increased 3.3% to 3,080 yen.

Nippon Steel increased 2.7% to 231 yen and JFE Holdings, Inc increased 1.5% to 1,769 yen. Kobe Steel added 2 yen to 139 yen.

Toyota Motor increased 0.8% to 2,700 yen and Honda Motor Co. fell 0.2% to 2,372 yen and Nissan Motor gained 0.2% 673 yen.

Sony Corp fell 0.7% to 1,558 yen, Panasonic Corp fell 2 yen to 770 yen and Canon Inc increased 1.5% to 3,500 yen. Nintendo Co, Ltd added 360 yen or 2.7% to 13,400 yen.

Fanuc declined 3.4% to 11,610 yen.

Construction equipment makers liked to China closed higher. Komatsu fell 1.9% to 1,881 yen and Hitachi Construction Machinery Co decreased 1.2% to 1,352 yen.

Shipping companies closed higher. Nippon Yusen KK gained 0.9% to 225 yen and Mitsui O.S.K. Lines Ltd advanced 1 yen to 317 yen. Kawasaki Kisen Kaisha Ltd fell 1 yen to 186 yen.

Isetan Mitsukoshi Holdings increased 0.8% to 766 yen and Takashimaya Co increased 2.9% to 531 yen.