Energy Stocks Led Japan Higher

123jump.com Staff
06 Dec, 2007
New York City

Japan stocks gained afer overnight rally in the U.S. financial markets. Crude oil jumped across the region and closed above $90. Nikkei 225 rose 1.7% or 265.20 to close 15,874.08. Of the stocks in Nikkei 225 index, 182 advacned and 38 declined. Export and energy sectors led the gainers.

[R]6:00AM New York, 7:00PM Tokyo - Tokyo soared 1.7% on the U.S. productivity and jobs report and falling yen.[/R]

In Tokyo trading Nikkei 225 rose 1.7% or 265.2 to 15,874.08, while the broader Topix Index gained 25.64 to 1,552.27.

In the first section of the Tokyo Stock Exchange 8.3 billion shares valued at 1.1 trillion yen were traded and in the second section 274 million shares worth 7.3 billion yen changed hands.

Of the Nikkei 225 stocks 182 firmed, 38 declined, and 5 were unchanged. Fujikura led advancers with a rise of 11.11%, followed by Sumco Corp and Advantest Corp rising 9.02% and 7.12% respectively after analysts forecasted computers demand from emerging markets is expected to rise in 2008.

Third quarter worker productivity in the U.S. climbed the most since 2003 to an annual 6.3%. Economists had forecasted a 6.2% rise. Furthermore the third-quarter figure in output per unit of labor or hour of work was revised up from an earlier 4.9% estimate and was nearly three times increase of 2.2% in the second quarter.

Separately, ADP Employer Services said the U.S added 189,000 jobs more than triple analyst forecasts.

U.S. buyout fund TPG Incorporated might announce a 30 billion yen acquisition of lender NIS Group Company. The Japanese lender posted a first half loss of 2 billion yen as claims of interest refunds increased. The news was first reported by the Bloomberg News.

Japan Today, local newspaper in Tokyo reported that Daiwa House Industries is considering a business and capital alliance with Odakyu Construction Company in a bid to overcome the increasingly difficult business environment.

Of the Nikkei 225 index shares, Fujikura Limited led gainers with a rise of 11.11% followed by rises of 9.03% in Sumco Corp, 7.12% in Advantest Corp, 6.86% in Kajima Corp, and 6.81% in Nikon Corp.

Tech stocks rose after analyst Kevin Cassidy at Thomas Weisel yesterday revised Intel Corp’s rating to “overweight” citing increased demand of computers from countries such as India, China, Russian and Vietnam. In addition, Dramexhange Technology Incorporated said yesterday prices for 512 megabit DRAM chips rose by 1.1%.

Financial stocks rose as well after the U.S. regulators and lenders agreed to freeze interest rates on sub-prime mortgages for five years to stem rising foreclosures. Mitsubishi UFJ Financial Group climbed 6.60%, Mizuho Financial Group soared 5.54% and Sumitomo Mitsui Financial Group increased 6.59%.

Exporters soared after the yen declined to a four week low from 110.96 to 111.03. Canon Incorporated gained 0.86%, Honda Motor Corporation edged up 2.41%, Toyota Motor Corp soared 1.63% and Sony Corp spiked 2.39%.

Energy stocks gained after the OPEC elected to keep its output quota on hold. Oil price jumped above $90 per barrel as a result. Inpex Holdings rose 2.63%, Mitsui & Co firmed 1.10% and Nippon Oil Corp gained 3.11%.

Denki Kagaku led decliners in the Nikkei 225 index shares with a loss of 5.29%, followed by declines of 3.76% Kyowa Hakko Kog, of 2.55% in Yahoo Japan Corp, of 2.48% in Mitsui Engineering & Shipbuilding, and Suzuki Motor Corporation of 2.24%.

The Nikkei newspaper said today IHI Corp will supply doors and other parts from its Russian joint venture to Renault SA beginning in 2009. The parts will be used in the manufacture of Logan vehicle for sale in emerging markets. The company closed up 2.93%.