Tokyo Closed Higher, Inpex Surges

123jump.com Staff
07 May, 2008
New York City

Stocks in Japan advanced as rising crude oil prices topped $122 per barrel on further supply disruptions in Nigeria and elevated crude oil demand in the U.S, China and India. After the close, U.S. reported in its weekly oil inventory report a decline in Crude oil import by less than 5%. China, India and the U.S. continues to import crude oil at elevated level, despite oil trading above $122 a barrel. Average gasoline price in Japan rose nearly 6 yen in a week and reached 159.20 yen.

[R]5:00AM New York, 7:00PM Tokyo - Crude oil prices lifts trading companies and broader market averages but stocks decline in Hong Kong and Shanghai.[/R]

Stocks in Japan advanced as rising crude oil prices topped $122 per barrel on further supply disruptions in Nigeria and elevated crude oil demand in the U.S, China and India.

In Tokyo trading Nikkei 225 rose 0.38% or 53.32 at 14, 102.48 after a two-day holiday, and the broader Topix Index jumped 1.2% or 15.89 at 1,393.28.

In the first section of the Tokyo Stock Exchange 9.6 billion shares worth 1.1 trillion yen were traded and in the second section 228 million shares valued at 7.2 billion yen changed hands.

Of the Nikkei 225 index shares 128 advanced, 88 declined, and 8 were unchanged. Inpex Holdings led advancers in the index shares with a rise of 13.27% after crude oil prices increased to $122 per barrel, while futures closed 1.6% higher at $121.84, record in the last 25 years of trading.

Japan’s average retail gasoline price rise to 159.20 yen per liter

Kyodo news reported today that according to the Oil Information Centre, Japan’s average retail price of regular gasoline rose to a record 159.20 yen per liter on Monday, surpassing the previous record of 155.50 yen last December.

The average price was up 5.80 yen from a week ago after gas stations raised retail gasoline prices on an extra tax of 25.10 yen per liter. Diesel oil attracted additional tax of 17.10 per liter on Thursday. Average retail price of petrol across Japan is expected to cross 160 yen before the summer months.

Asian steelmakers to invest $379 million at Australian mine

Nippon Steel Corp., JFE Holdings Inc. and Posco will invest $379 million and join Cia. Vale do Rio Doce to increase production almost fourfold at a jointly owned coal mine in Australia to 3.7 million tons from 1 million tons by July 2009. The news was first reported by Bloomberg News.

Vale is currently expanding output to meet growing demand for the steelmaking material in both China and Japan.

However, plans for increasing steel production and supply cuts have pushed coking coal prices to record highs this year. Last month Nippon Steel agreed to pay $300 a ton, three times more than a year ago for metallurgical coal for shipments beginning April 1, 2008.

Rice prices soar

Prices of rice have continued to soar as Cyclone Nargis struck the rice-growing area of Myanmar. The country, one of the leading rice exporter is may have to import rice.

Rice futures contract on Chicago Mercantile Exchange traded at $21.60 per 100 pounds and has gained as much as 4.7% in the past four days.

Gainers & Losers

Inpex Holdings led advancers in the Nikkei 225 index shares with a rise of 13.27% followed by rises in Hitachi Zosen of 11.61%, in Mitsui Engineering & Shipbuilding of 8.63%, in Nippon Oil Corp. of 7.80% and Sumco Corp. of 7.58%.

Other commodity stocks rose as well. Nippon Mining House rose 7.19% and Showa Shell increased 5.06%.

Mitsubishi Electric Corp led decliners in the Nikkei 225 index shares with drop of 4.95% followed by losses in Trend Micro Inc of 4.76%, in Tokyu Land Corp. of 3.56%, in Yahoo Japan Corp. of 3.28%, and Konica Minolta Holdings of 3.06%.

Utility companies fell on the speculation that rising oil prices will erode profits.

Asian markets review

In Tokyo Nikkei 225 Index closed higher 53.22 or 0.38% to 14,102.48, in Hong Kong Hang Seng index decreased 651.92 or 2.48% closed to 25,610.21. In Australia ASX 200 index lower 33.00 or 0.58% to close 5,668.40. In Malaysia KL Composite index increased 11.06 or 0.87% closed to 1,287.15.

In South Korea Kospi Index decreased 5.05 or 0.27% to close at 1,854.01, in Thailand SET index closed higher 2.88 or 0.34% to 848.71 and Indonesia JSE Index edged increased 10.87 or 0.46% to 2,382.70. Sensex index in India decreased 33.70 or 0.19% to 17,339.31.