Tokyo Stocks Surge in Asia Rally

123jump.com Staff
25 Jan, 2008
New York City

Stocks in Japan and in Asia surged as the U.S. markets closed higher. Investors hoped that the U.S. stimulus plan will help revive the flagging economic growth. Nikkei 225 soared 4.1% or 536.38 to 13,629.16, down 1.7% for the week, while the broader Topix Index rose 4.7% or 60.32 to 1,344.77. Hong Kong and India surged nearly 7% and Australia advanced 5%.

[R]5:00AM New York, 7:00PM Tokyo – Japanese stocks surged on Asiawide rally. Unemployment in December fell to 5% and consumer price index rose 0.2% in December.[/R]

Stocks in Japan participated in stockmarket surge across Asia as the U.S. stimulus plan positively influenced investor sentiment.

In Tokyo trading Nikkei 225 soared 4.1% or 536.38 to 13,629.16, down 1.7% for the week, while the broader Topix Index rose 4.7% or 60.32 to 1,344.77.

In the first section of the Tokyo Stock Exchange 11 billion shares worth 1.3 trillion yen were traded and in the seond section 429 million shares valued at 5.6 billion yen changed hands.

Of the Nikkei 225 stocks, 218 rose, and 6 declined. Mizuho Financial Group led advancers with a rise of 10.89% after confidence returned in the market as the Bush administration and Congress agreed on the stimulus plan.

Other financial stocks gained as well. Mitsubishi UFJ Financial Group climbed 7.88% and Resona Holdings jumped 7.69%.

The Statistics Bureau announced in Tokyo today that the Japan’s consumer price index rose 0.2% in December from the previous month and gained 0.7% in the month from a year ago.

Food prices rose 0.3% from previous month and 0.9% for the year and housing edged up 0.1% from previous month and year. Fuel, light and water charges also rose 1.2% from the previous and 3.6% from a year ago, while furniture and household prices declined 0.2% and 1.7% from previous month and year respectively.

Furthermore, clothing and footwear slumped 0.4% from November and gained 0.6% on the year. However, transport and communication 0.9% from November and 2.6% year on year.

On the overall general prices, excluding fresh food jumped 0.3% from November and 0.8% from last year.

Statistics in the Ku-area of Tokyo, which is used to gauge prices in Japan, reveal that the consumer price index in January fell 0.4% from December, but rose 0.2% from last year. Food prices gained 0.5% on the month but were unchanged for the year. However housing prices remained unchanged for both the month and the year.

Fuel, light, and water charges gained 1.0% from the previous month and 1.5% from last year. Also furniture and household utensils declined 0.1% from December and fell 2.3% for the year. Clothes and footwear slumped 7.2% from the previous month and 0.4% from last year.

According to the Statistics Bureau, the number of employed persons in November rose 0.4% from the precious year at 64.33 million while the number of unemployed fell 5% year on year to 2.46 million.

The unemployment rate on a seasonally adjusted basis declined 3.8% in November.

In addition the family income and expenditure survey showed the average monthly consumption pattern per household in November fell 0.6% from a year ago in real terms to 282,836 yen, while for worker’s households the amount of monthly income per household plummeted 2.1% in real term from the previous year at 435,640 yen.

Of the Nikkei 225 index stocks Mizuho Financial Group led advancers with a rise of 10.9% followed by gains in Hino Motors Limited of 10.88%, in Chiyoda Corp of 10.02%, in Sumitomo Osaka of 9.84%, and in Komatsu Limited of 9.38%.

Commodity stocks also rose as crude oil prices for March ddelivery spiked by $2.42 to $89.41 per barrel.

Chipmakers also gained as Microsoft led gainers on Wall Street after increasing its annual sales forecast to $60.5 billion. Advantest Corporation closed up.

Kao Corporation led decliners in the Nikkei 225 index stocks with a drop of 3.66% followed by declines in Nippon Light Metals of 3.30%, in Nissan Chemical Industries of 2.24%, in Fast Retailing of 0.73%, and in Comsys Holdings of 0.47%.

KDDI Corporation announced today that third quarter net income soared to 69 billion yen from 55 billion yen a year ago, while sales rose 5.5% to 904.4 billion after the company grew its subscriber base.

Operating profit also gained 40% to 121.4 billion yen and s further expected to rise 6.2% from the October forecast.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 536.38 or 4.10% to 13,629.16, in Hong Kong Hang Seng index increased 1583.10 or 6.73% closed to 25,122.37, in Australia ASX 200 index higher 279.90 or 5.02% to close 5,860.30.

In South Korea Kospi Index increased 29.41 or 1.77% to close at 1,692.41, in Thailand SET index closed higher 31.14 or 4.27% to 759.72, and Indonesia JSE Index edged increased 103.79 or 4.12% to 2,620.49. Sensex index in India increased 1139.90 or 6.62% to 18,361.66.