Japan Stocks Edge Higher; Realty Stocks Down

123jump.com Staff
25 Nov, 2009
New York City

Japan stocks are expected to open higher tracking the gains in New York. Futures of resource stocks are leading higher after gold closed at a record high. Automakers gained and shippers and real estate developers fell in Wednesday

[R]5:30 PM New York, 7:30 AM Tokyo – Japan stocks are expected to open higher tracking the gains in New York. Futures of resource stocks are leading higher after gold closed at a record high. Automakers gained and shippers and real estate developers fell in Wednesday’s trading.[/R]

Stocks in Japan are expected to open higher following the higher close in New York. Gold traded at a record high on the speculation that India will buy more gold.

The dollar declined against the euro and yen in New York trading and fell to $1.51 against the euro and at 87.33 against the yen.

Central banks around the world are looking for an alternative to the dollar. Gold closed at a record high after the Reserve Bank of India is expected to add more to its gold holding. Russia is also expected to increase its holding of Canadian dollar and diversify its foreign reserve assets. The Swiss franc gained to trade at a parity to the U.S. dollar for the first time in eighteen months.

U.S. stocks traded flat after the weekly jobless claims declined 35,000. October durable goods orders decreased 0.6% and personal income increased 0.2%. Single family new home sales increased 6.2% in the month. Gold trades at a record high.

Finance Minister Hirohisa Fujii said that Renminbi in China is undervalued “given the strength of the Chinese economy.” He also added that the currency is pegged to the dollar and “is not necessarily good”, in an interview in Tokyo with Bloomberg news.

The comments from the Finance minister is the latest call after a chorus of officials from the U.S, Europe and other Asian nations have urged China to strengthen its currency.

In stock trading on Wednesday, property developers and shipping lines declined and automakers increased.

Tokyo Stock Movers

Anabuki, a condo developer filed for bankruptcy protection with 140 billion yen in unpaid debts. Chugoku Bank Ltd decreased 1.7% after it confirmed that it will write off the unsecured loans to the condominium developer.

Mitsui Fudosan dropped 2.6% to 1,385 yen and Sumitomo Realty & Development declined 1.9% to 1,413 yen. Mitsubishi Estate increased 0.7% to 1,257 yen

Shipping companies decreased after the freight rate index edged lower in London trading. Nippon Yusen KK decreased 4.8% to 275 yen and Kawasaki Kisen Kaisha Ltd fell 3.7% to 259 yen.

Nissan Motor Company increased 3.9% to 637 yen and Honda Motor increased 2.6% to 2,795 yen. Suzuki Motor decreased 2.4% to 2,050 yen.

Toyota Motor declined 1.8% to 3,360 yen after it decided to recall 4 million vehicles to replace accelerator foot pedals in the U.S. The automaker will also install brake override system on some of the models after drivers report sudden acceleration under certain conditions.

All Nippon Airways closed down 0.4% to 227 yen and Japan Airlines Corp increased 3.3% to 93 yen.

Nikkei 200 Average Movers

Marui Group Co., Ltd. led the decliners in the Nikkei 225 index of 4.8% followed by losses in Nippon Yusen Kabushiki Kaisha of 4.8%, Fukuoka Financial Group, Inc. of 4.6%, in Hitachi, Ltd. of 4.4% and in Fuji Electric Holdings Co., Ltd. of 4.4%.

Fuji Heavy Industries Ltd. led gainers in the Nikkei 225 index with a rise of 5.3% followed by gains Meidensha Corporation of 4.8%, in Kawasaki Heavy Industries, Ltd. of 3.9%, in Nissan Motor Co., Ltd. of 3.9%, and in Mitsubishi Electric Corporation of 3.4%.