Japan Investors Bank on Global Recovery

Darlington Musarurwa
03 Jun, 2009
New York City

Stocks in Japan closed higher for the sixth day in a row. Optimistic investors are banking on a global economic recovery and strengthening commodities prices to lift earnings. Industrials, chemicals and energy and commodities related stocks closed higher.

[R]8:00 PM Tokyo, 9:00 AM New York – Stocks in Japan closed higher for the sixth day in a row. Optimistic investors are banking on a global economic recovery and strengthening commodities prices to lift earnings. Industrials, chemicals and energy and commodities related stocks closed higher.[/R]

Investors in Japan are counting on a global economic recovery and willing to add stocks to their holdings. The benchmark indexes for the sixth day in a row closed higher. The talk of economy bottoming out in the first quarter of this year and stimulus package of 15.4 trillion yen has sustained investor enthusiasm.

The Nikkei 225 Index in Tokyo closed higher 37.36 or 0.38% to 9,741.67. Industrial and commodities linked stocks led the gainers in trading.

Gainers & Losers

In the absence of economic news stocks pushed by brokers were in focus in trading.

Asahi Glass Company surged 5.4%to 768 yen and Nippon Electric Glass Co. soared 8.2% to 998 yen after JP Morgan analyst offered positive comments on sales in the mid-term.

A drop in crude oil prices and copper did not deter resources linked stocks to close higher. Inpex Corp increased 1.4% to 788,000 yen and Nippon Mining Holdings Inc added 5.2% to 569 yen. Sumitomo Metals & Mining surged 5.5% to 1,481 yen and Toho Zinc added 3.1% to 429 yen.

Mitsubishi Heavy Industries Ltd. added 0.8% to 363 yen after it estimated sales from clean energy division to surge 50% to 3 trillion by fiscal 2012.

Banks in trading close lower. Sumitomo Trust dropped 1.7% to 474 yen, Chiba Bank declined 1.3% to 35 yen, Mitsubishi UFJ edged lower 1.1% to 614 yen and Mizuho Financial declined 1.3% to 235 yen.

Nikkei 200 Average Movers

Sumco Corp led the decliners in the Nikkei 225 index of 4.9% followed by losses in Fujikura Ltd. of 3.4%, in OJI Paper Co Ltd of 3.2%, in CSK Holdings Corporation of 2.7% and in Shimizu Corp of 2.5%.

Sumitomo Metal Mining Co Ltd. led gainers in the Nikkei 225 index with a rise of 5.4% followed by gains in Asahi Glass Co Ltd. of 5.3%, in GS Yuasa Corporation of 5.3% and Konica Minolta Holdings Inc of 5.1%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 37.36 or 0.38% to 9,741.67, Hang Seng index in Hong Kong increased 187.39 or 1.02% closed to 18,576.47, CSI 300 index in China higher 74.29 or 2.59% closed to 2,939.39. ASX 200 index in Australia increased 61.90 or 1.56% closed to 4,017.20. The KL Composite index in Malaysia lower 8.22 or 0.77% closed to 1,055.40.

The Kospi Index in South Korea increased 2.04 or 0.14% to close at 1,414.89. SET index in Thailand closed higher 7.95 or 1.38% to 582.25 and JSE Index in Indonesia increased 12.27 or 0.61% closed to 2,010.91. The Sensex index in India decreased 4.01 or 0.03% closed to 14,870.90.