Japan Stocks Rebound; Autos, Steelmakers Rise

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

Stocks in Japan edged higher after commodities prices increased and Chinese stocks rebounded. Japan construction machinery association lowered its estimate for shipments. Auto and truck makers gained on brokerage recommendation.

[R]9:00 PM Tokyo – Stocks in Japan edged higher after commodities prices increased and Chinese stocks rebounded. Japan construction machinery association lowered its estimate for shipments. Auto and truck makers gained on brokerage recommendation.[/R]

The Nikkei 225 Index in Tokyo closed higher 179.41 or 1.76% to 10,383.41

World crude steel production across 66 largest steel producing nations declined 11% compared to a year ago to 103.9 million metric tons. The monthly decline has slowed from 24% drop in January to 16% fall in June and now down to 11% according to the latest data from the World Steel Association.

China accounted for half the world production with 50.6 million tons and India has surpassed the U.S. steel production for the last three months and for the year to date.

Steel production in Japan has recovered from the low of 5.5 million tons in February to 7.6 million tons in July.

The estimates for shipments of construction machinery were revised lower by the industry association to a decline of 42% compared to the previous estimate of 22% drop in February.

The latest estimate of 1.137 trillion yen is based on weak demand in the domestic and international markets. Japan Construction Equipment Manufacturers Association estimate includes the shipments of tractors, cranes, bulldozers and other equipment.

Gainers & Losers

Truck and automakers closed higher on the optimism that sales are expected to recover in the second half of the current fiscal year.

Hino Motors Ltd added 5.1% to 391 yen and Isuzu Motors Ltd increased 5.4% to 197 yen. Toyota Motor increased 1.2% to 4,100 yen and Nissan Motor added 1.2% to 714 yen.

All Nippon Airways increase 4.4% to 285 yen after Mitsubishi UFJ estimated improved earnings in 2010 and assigned higher rating to the stock.

Komatsu Ltd decreased 1.4% to 1,660 yen, Hitachi Construction Machinery decreased 0.05% to 1,869 yen and Kubota Corp edged up 0.2% to 777 yen.

Nippon Steel edged up 1% and JFE Holdings added 0.6% after the World Steel Association released its latest monthly statistics.

Nikkei 200 Average Movers

Teijin Ltd led the decliners in the Nikkei 225 index of 2.7% followed by losses in Nippon Soda Co Ltd of 2.4%, in Taiyo Yuden Co Ltd of 1.7%, in Komatsu Ltd of 1.3% and in JTEKT Corp of 1.0%.

Ebara Corp led gainers in the Nikkei 225 index with a rise of 12.0% followed by gains in Nippon Light Metal Co Ltd.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 179.41 or 1.76% to 10,383.41, Hang Seng index in Hong Kong increased 374.63 or 1.88% to 20,328.86 and CSI 300 index in China higher 129.82 or 4.31% to 3,144.39. ASX 200 index in Australia increased 3.70 or 0.08% to 4,377.50. The FTSE Bursa KL Composite index in Malaysia closed higher 7.90 or 0.68% to 1,163.43.

The Kospi Index in South Korea increased 30.43 or 1.97% to close at 1,576.39. SET index in Thailand closed higher 9.70 or 1.54% to 640.98 and JSE Index in Indonesia increased 50.89 or 2.23% to 2,328.64. The Sensex index in India increased 202.68 or 1.37% to 15,012.32.

Nikkei 200 Average Movers

Teijin Ltd led the decliners in the Nikkei 225 index of 2.7% followed by losses in Nippon Soda Co Ltd of 2.4%, in Taiyo Yuden Co Ltd of 1.7%, in Komatsu Ltd of 1.3% and in JTEKT Corp of 1.0%.

Ebara Corp led gainers in the Nikkei 225 index with a rise of 12.0% followed by gains in Nippon Light Metal Co Ltd.