Stocks in Japan Edge Higher, Yen Drifts Lower

123jump.com Staff
03 Apr, 2009
New York City

Exporters, shipping lines and realty companies led gainers in Tokyo trading. Yen drifted lower and reached nearly 100 yen against a dollar. The G-20 commitment to finance and back international trade lifted stocks in Asia and in India. Japan pension investment fund projects net cash outflow.

[R]5:00AM New York, 7:00PM Tokyo – Exporters, shipping lines and realty companies led gainers in Tokyo trading. Yen drifted lower and reached nearly 100 yen against a dollar. The G-20 commitment to finance and back international trade lifted stocks in Asia and in India. Japan’s pension investment fund projects net cash outflow of $40 billion.[/R]

Japan stock indexes gained on hopes that the global economy will rebound as the G-20 members committed to injecting $1 trillion into the financial system in order to boost growth. The focus on reviving international trade and Japan and China committing $250 billion to IMF and having a greater say how IMF is run also boosted stocks linked to the international markets.

Investor sentiment was also strengthened by a weaker yen, which eased to 99.90 against the dollar. Exporters, shipping lines and realty companies led the gainers in Tokyo trading.

In Tokyo trading Nikkei 225 edged up 0.3% or 30.06 to 8,749.84, rising 1.4% for the week, and the broader Topix Index increased 0.6% or 4.67 to 831.36, gaining 0.8% for the week.

In the first section of the Tokyo Stock Exchange 28.4 billion shares worth 1.8 trillion yen were traded and in the second section 275 million shares valued at 2.5 billion yen changed hands.

Of the Nikkei 225 index stocks, 106 rose, 109 dropped, and 10 were unchanged. Kawasaki Kisen led gainers in the index shares with a rise of 9.7% followed by NSK Ltd of 9.5%.

Pension Fund Forecasts Net Cash Outflow of $40 billion

Reuters News reported that Japan’s Government Pension Investment Fund (GPIF) said its net cash outflow will be $40 billion during the business year to March 2010.

GPIF is the world''s largest public pension fund with an estimated $1.5 trillion in assets and invests the reserves of national and corporate pension plans into foreign and domestic stocks and bonds.

The pension fund notes that is projects 4.74 trillion yen will be shifted into the national treasury to repay benefits to pension recipients.

New cash inflow will rise to 371.4 billion yen, yielding a net cash outflow of more than 4 trillion yen.

According to the report, GPIF had new money totaling 9.5 trillion yen from the loan paid back from semi-government entities and other public entities and proceeds from Zaito agency bonds.

At the end of December, the pension investment fund had 75.9% in domestic bonds, including Zaito bonds, 9.46% in Japanese stocks, 7.82 % in foreign bonds and 6.66% in foreign stocks.

Pension Funds Purchases 6.15 trillion yen Stocks in 2008

Separately, the Nikkei News reported that pension funds aggressively bought stocks during 2008 through trust banks, with net buyers increasing to 6.15 trillion yen.

Gainers & Losers

Kawasaki Kisen led gainers in the Nikkei 225 index shares with a rise of 9.7% followed by increases in NSK Ltd. of 9.5%, in Yokogawa Electric of 8.1%, in JFE Holdings of 7.6%, and Mitsui Chemicals of 7.3%.

Automakers also rallied. Toyota Motor Co. jumped 7.3% and Nissan Motor Co. climbed 5.9%.

Hino Motors led decliners in the Nikkei 225 index shares with a fall of 6.8% followed by losses in Mizuho Trust & Banking of 6.1%, in Meiji HD of 6.1%, in Dainippon Sumitomo of 5.5% and Marui Group of 5%.