Tokyo Rises 3%, Leads Asian Rally

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

Tokyo stocks rallied on the back of higher closing in the U.S. stocks and firmer trading this morning in Europe. Expectations of an additonal U.S. rate cut were building in Tokyo. Separately, India left its rates unchanged. Statistics office in Japan released December monthly household income and expenditure data. Monthly income fell 1.8% and expenditures rose 2.2% in real terms. December unemployment fell to 3.8%.

[R]6:00AM New York – Stocks in Japan surged on the back of market rise in the U.S. and firm trading in Europe this morning.[/R]

Asian stocks rallied on the back of higher closing in New York led by a rally in Tokyo.

In Tokyo Nikkei 225 Index closed higher 390.95 or 2.99% to 13,478.86, in Hong Kong Hang Seng index increased 238.19 or 0.99% closed to 24,291.80, in Australia ASX 200 index lower 143.80 or 2.45% to close 5,716.50.

In South Korea Kospi Index increased 10.72 or 0.66% to close at 1,637.91, in Thailand SET index closed higher 10.51 or 1.41% to 754.87, and Indonesia JSE Index edged increased 25.79 or 1.00% to 2,607.84. Sensex index in India decreased 60.80 or 0.33% to 18,091.94.

Seasonally adjusted unemployment rate in Japan fell to 3.8% after the number of unemployed fell to 2.31 million, a decline of 130,000 from a year ago.

Statistics Office in Japan reported average monthly consumption and income for the December month.

The average amount of monthly consumption expenditures per household in December 2007 was 351,667 yen, up 3.1% in nominal terms and up 2.2% in real terms from the previous year. The average amount of monthly income per household stood at 950,654 yen, down 1.8% in nominal terms and down 2.7% in real terms from the previous year. The amount of consumption expenditures was 379,388 yen, up 2.7% in nominal terms and up 1.8% in real terms from the previous year.

Mitsubishi UFJ, largest bank in Japan added 45 or 4.6% to 1,030 yen followed by similar rises in other banks. Real Estate companies advanced as well. Sumitomo Realty surged 6.1% or 145 yen to close at 2,525 yen.

As the fears of recession in the U.S. fades, shipping lines, exporters, and auto companies advanced. Toyota Motor added 3%, Nippon Yusen increased 8.1% to 825 yen, and Isuzo surged 10% or 38 yen to 433 yen.

Mitsui & Company added 7.2% or 141 yen to close at 2,95 yen as prices of commodities and metals advanced.