Japan Rallies On Export-Oriented Stocks

Ivaylo
22 Jun, 2006
New York City

Asian markets ended higher Thursday, with Japan''s Nikkei Average surging on gains in export-oriented stocks such as Sony Corp. and Canon Inc. following the release of data showing a jump in Japanese exports in May. Overnight advance on New York contributed to the bullish sentiment.

[R]7:15AM Asian stocks finish higher on Japan’s trade data and overseas gains.[/R]
Asian markets closed higher. The Nikkei 225 Average closed up 3.36% to 15,135.69, making its first break above the 15,000 level in two weeks. Sentiment was upbeat on the release of the economy ministry''s all-industries index, which advanced 1.3% in April from March, the first gain in three months. Camera maker Canon gained 3%. Consumer electronics company Sony climbed 2.3%. Chip-equipment maker Kyocera surged 4.6% and Toshiba Corp. added 2.8%, advancing as the electronics maker gave a press briefing late in the day to launch its next-generation, high-definition optical disc recorder. In Hong Kong, shares followed the regional trend. The Hang Seng Index advanced 1.1% to 15826.70, as some investors considered a global correction based on concerns over rising U.S. interest rates and inflation had been overstated. Taiwan shares also finished higher as strength in U.S. markets overnight sparked bargain hunting on the local exchange. The Weighted Price Index of the Taiwan Stock Exchange gained 185.56 points, or 2.9%, to 6485.15, bouncing back from a six-month low Wednesday, when it shed 1%.Construction companies led Thursday''s gainers, advancing 5.2% overall, followed by electronics firms, which accounted for 73% of volume and advanced 4%.Markets in South Korea, Singapore and Australia gained more than 1%. Shanghai and Wellington were 0.8% higher. Shares listed in Shanghai slipped slightly.

[R]6:30AM European shares gain on overseas rally and resource stocks.[/R]
European markets traded higher in mid-morning session. The U.K. FTSE 100 index rose 1% to trade at 5,723, the German DAX Xetra 30 index advanced 1.3% at 5,573 and the French CAC-40 index added 1.1% at 4,826. Mining shares such as Anglo American Antofagasta, and oil companies, including BP and Royal Dutch Shell, were among the top gainers in Europe. Allianz announced plans to reduce nearly 7,500 jobs as part of a restructuring plan targeting stronger earnings. The company advanced 1.7%. Lafarge, the French building materials group, advanced 3.3% after it lifted its mid-term targets and said it was considering selling its underperforming roofing business to help boost profits. Deutsche Borse advanced 4.2% and Euronext gained 2.9% as investors digested the latest comments from Euronext’s suitors. John Thain, chief executive of the New York Stock Exchange, denied any possibility of making him abandon his bid for the bourse operator.

U.S. light crude oil for August advanced 64 cents to $70.97 a barrel, putting up nearly a dollar on Wednesday, in a gasoline-led rally. European benchmark Brent advanced 65 cents to $69.82. The dollar fell slightly against the euro. The 12-country currency bought $1.2663, up from $1.2660 Wednesday evening in New York. The British pound advanced on the dollar as well Thursday, rising to $1.8457 from $1.8447. The dollar dropped against the yen, to 114.85 yen from 114.87.

[R]5:30AM Gold advances on energy prices and bargain-hunting.[/R]
August gold climbed $10.50 to $591 an ounce on NYME. July silver ended up 15 cents to $10.42 an ounce. July platinum advanced $25.40 to $1,193.90 an ounce and palladium rose $10.50 at $314.50 an ounce. July platinum hit $1,196, its highest level since also peaking at this price back on June 12. The benchmark September copper contract finished 1.80 cents higher at $3.11 per pound.

Crude oil futures in New York rallied, ending above $70 a barrel for the first time in more than a week. The August crude oil futures contract finished 99 cents up to end at $70.33 a barrel. July gasoline futures added 6.04 cents higher at $2.0660 a gallon. On the New York Board of Trade, July Arabica coffee closed 0.35 cent lower at 95.10 cents a pound. September coffee, falling to a new 9-month low, ended down 0.75 cent at 96.70 cents a pound. Futures on raw sugar in foreign ports climbed to three-week highs. July closed up 0.53 cent at 15.74 cents a pound.