Tokyo Stocks Rebound on U.S. Durable Orders

Darlington Musarurwa
25 Jun, 2009
New York City

Stocks in Tokyo trading jumped after the U.S. durable goods orders increased. The OECD forecasted deeper Japanese recession and slower recovery than earlier predicted. Exporters, machinery makers and trading companies led the gainers.

[R]7:00 PM Tokyo, 6:00 AM New York – Stocks in Tokyo trading jumped after the U.S. durable goods orders increased. The OECD forecasted deeper Japanese recession and slower recovery than earlier predicted.[/R]

The stocks in Tokyo closed higher after the U.S. durable goods orders increased and weak home sales in May. The investors focused on unexpected rise in durable goods orders and speculated that earnings of exporters will improve.

The OECD forecasted economic contraction in Japan of 6.8% in 2009 and a rise of 0.7% in 2010 compared to March estimate of 6.6% and 0.5% respectively.

The Nikkei 225 Index in Tokyo closed higher 205.76 or 2.15% to 9,796.08.

Gainers & Losers

Exporters, machinery makers and trading companies closed higher.

Honda Motor increased 2.7% to 2,625 yen, Suzuki Motor increased 4.8% to 2,080 yen, Toyota Motor added 3.9% to 3,760 yen and Nissan Motor increased 2.6% to 585 yen.

Alps Electronics added 4.4% to 498 yen, Sony Corp increased 2% to 2,515 yen and Cannon Inc increased 2.2% to 3,270 yen.

Construction machinery makers increased as well. Komatsu Ltd increased 5.3% to 1,506 yen and Hitachi Construction Machinery added 4.9% to 1,616 yen.

Trading companies gained after a mild rise in metals and energy prices. Marubeni Corp added 3.8% to 435 yen and Mitsui & Company increased 3.7% to 1,155 yen.

U.S. private equity funds backed banks surged. Shinsei surged 11% to 161 yen and Aozora jumped 11% to 154 yen after two companies confirmed merger talks.

Nikkei 200 Average Movers

Fujikura Ltd led the decliners in the Nikkei 225 index of 5.0% followed by losses in MEIJI Holdings Co Ltd of 2.5%, in Bridgestone Corp of 2.4%, in Teijin Ltd of 2.0% and in Shionogi & Co Ltd of 1.3%.

Shinsei Bank, Limited led gainers in the Nikkei 225 index with a rise of 11.0% followed by gains in CSK Holdings Corporation of 9.4%, in Taiyo Yuden Co Ltd of 8.5% and Fuji Heavy Industries Ltd of 8.0%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 205.76 or 2.15% to 9,796.08, Hang Seng index in Hong Kong increased 382.88 or 2.14% to 18,275.03, CSI 300 index in China lower 2.81 or 0.09% to 3,117.92. ASX 200 index in Australia increased 49.00 or 1.29% to 3,856.00. The KL Composite index in Malaysia closed higher 16.26 or 1.54% to 1,074.11.

The Kospi Index in South Korea increased 28.94 or 2.12% to close at 1,392.73.SET index in Thailand closed higher 9.17 or 1.58% to 590.60 and JSE Index in Indonesia increased 48.50 or 2.43% to 2,044.17. The Sensex index in India decreased 77.11 or 0.53 % to 14,345.62.