Tokyo Stocks Ahead; Resource, Exporters to Lead

123jump.com Staff
13 Aug, 2009
New York City

Stocks in Japan are expected to trade higher after the economies of Germany and France expanded and the benchmark indexes in the U.S. closed higher. A rise in metals and energy prices are also expected to lift resource stocks.

[R]7:00 AM Tokyo – Stocks in Japan are expected to trade higher after the economies of Germany and France expanded and the benchmark indexes in the U.S. closed higher. A rise in metals and energy prices are also expected to lift resource stocks.[/R]

Stocks in Tokyo are expected to open higher after U.S. and European markets closed higher. The better than expected earnings from Wal-Mart and strength in financials lifted stocks in New York at close.

European markets closed higher after Germany, France and Greece economies expanded in the second quarter and the euro zone economic decline slowed in the second quarter.

On Thursday trading, the Nikkei 225 Index in Tokyo closed higher 82.19 or 0.79% to 10,517.19. Of the stocks in the index, 159 increased, 52 decreased and 14 were unchanged.

Investment Trusts Association, Japan estimated net inflows of 391 billion in July, third monthly increase in a row.

Gainers & Losers

Automakers, retailers and shipbuilders gained in Thursday trading in Tokyo.

Toyota Motor Corp added 1.5% to 4,090 yen and Honda Motor Company increased 1.3% to 3,080 yen.

Separately, U.S. government warned consumers to avoid signing contingency contracts that may force them to pay for cash rebates f dealers fail to secure funds from the U.S. government.

Railroad and technology makers gained after Vietnam Railways Corp plans to use bullet-train technology for a planned rail link between Ho Chi Minh City and Hanoi. The $55 billion project is expected to be completed in stages and is targeted to be completed by 2020 according to a report in Nikkei newspaper.

Kawasaki Heavy surged 7% to 263 yen and Nippon Sharyo increased 9% to 652 yen.

Isetan Mitsukoshi closed at 980 yen and the retailer plans to expand in China with 5 new stores.

Toray surged 6% to 568 yen after the company and researchers at Hoshi University plan to market insulin spray for diabetes. The news was first reported by Nikkei and Bloomberg.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 82.19 or 0.79% to 10,517.19, Hang Seng index in Hong Kong increased 426.06 or 2.08% to 20,861.30 and CSI 300 index in China higher 43.42 or 1.28% to 3,440.82. ASX 200 index in Australia increased 92.80 or 2.14% to 4,435.90. The FTSE Bursa KL Composite index in Malaysia closed higher 5.65 or 0.48% to 1,186.19.

The Kospi Index in South Korea decreased 0.71 or 0.05% to close at 1,564.64. SET index in Thailand closed higher 12.66 or 1.97% to 655.68 and JSE Index in Indonesia increased 49.13 or 2.09% to 2,396.49. The Sensex index in India increased 498.33 or 3.32% to 15,518.49.

Nikkei 200 Average Movers

MEIJI Holdings Co Ltd led the decliners in the Nikkei 225 index of 4.9% followed by losses in Takashimaya Co Ltd of 2.5%, in J Front Retailing Co Ltd of 2.2%, in Tokio Marine Holdings Inc of 2.2% and in Mitsubishi Paper Mills Ltd of 2.2%.

Kawasaki Heavy Industries Ltd led gainers in the Nikkei 225 index with a rise of 6.9% followed by gains in NTN Corp of 6.6%, in Taiheiyo Cement Corp of 6.0% and Toray Industries Inc of 5.9%.