Japan Stocks Surge 4.6%

123jump.com Staff
07 May, 2009
New York City

Stocks in Japan closed higher on optimistic view of the global economy, rising commodities prices and freight rate index. Investors bid up stocks after three days of holiday and on the view that U.S. banks will not be nationalized.

[R]11:00AM Japan – Stocks in Japan closed higher on optimistic view of the global economy, rising commodities prices and freight rate index. Investors bid up stocks after three days of holiday and on the view that U.S. banks will not be nationalized.[/R]

Stocks in Tokyo surged on a rally in banks, insurers, exporters and shippers. Market reopened after three days of holiday with an optimistic view on global economic outlook.

The Nikkei 225 Index in Tokyo closed higher 408.33 or 4.55% to 9,385.70 and the TOPIX index increased 39.08 or 4.6% to 885.93. Yen close at 99.09 to a dollar.

Mitsubishi UFJ surged 16% to 617 yen and Mizuho Financial Group increased 12% to 232 yen and Sompo Japan Insurance Inc soared 15.6% to 665 yen.

Shipping companies rallied after the freight rate index Baltic Dry Index increased 8.8% in London. Nippon Yusen increased 8.8% to 458 yen, Mitsui O.S.K. Lines Ltd added 8.4% to 640 yen.

Exports also rallied. Cannon Electronics Inc increased 5.7% to 1,219 yen, Sony Corp increased 6.7% to 2,755 yen and Casio Computer Corp increased 8.2% to 818 yen.

Nikkei Movers

Of the stocks in Nikkei 225 index, 199 increased, 20 declined and 6 were unchanged.

CSK Holdings Corporation led the decliners in the Nikkei 225 index of 7.4% followed by losses in Secom Co Ltd of 4.6%, in Nippon Paper Group, Inc of 2.3%, in Tokyo Electron Limited of 2.3% and in Unitika of 2.1 %.

The Bank of Yokohama, Ltd led gainers in the Nikkei 225 index with a rise of 15.0% followed by gains in Sompo Japan Insurance Inc of 14.6 %, in Mitsubishi UFJ Financial Group, Inc of 14.4% and The Bank of Yokohama, Ltd of 14.5%.

Other Movers

CSK Holdings Corporation fell 6.4% or ¥34.00 to ¥490.00 after the information technology (IT) business had a wider-than-expected loss in the year ended in March because of charges on asset sales, inventory and tax assets. CSK had a full-year net loss of 161 billion yen, wider than its loss projection of a 104 billion yen according to a preliminary earnings statement.

Secom Co Ltd, the security services company dropped 4.9% or ¥180.00 to ¥3460.00.

Toyota Motor Corp increased 3.6% to 4,040 yen, Honda Motor added 6.8% to 3,050 yen and Nissan Motor Corp increased 2.5% to 523.00 yen.

Nintendo Co Ltd declined 0.1% to 26,600 yen after it forecasted annual earnings of 490 billion yen for the year ending in March 2010.

Earnings Review

Nintendo Co., Ltd, the world’s largest maker of video-game players said full-year revenues fell 9.9% to ¥1.84 trillion from ¥1.67 trillion a year ago. Net profit for the year rose 8.5% to ¥279.1 billion compared to net profit of ¥257.3 billion a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 408.33 or 4.55% to 9,385.70, Hang Seng index in Hong Kong increased 383.32 or 2.28% closed to 17,217.89, CSI 300 index in China higher 2.10 or 0.08% closed to 2,767.08. ASX 200 index in Australia increased 71.60 or 1.85% closed to 3,938.70. The KL Composite index in Malaysia lower 0.49 or 0.05% closed to 1,023.47.

The Kospi Index in South Korea increased 7.63 or 0.55% to close at 1,401.08. SET index in Thailand closed higher 4.57 or 0.87% to 527.72 and JSE Index in Indonesia increased 30.52 or 1.70% closed to 1,828.85. The Sensex index in India increased 164.19 or 1.37% closed to 12,116.94.