2011年5月25日 星期三

Second Day Advance in Japan Stocks; Orix, NEC, Sumitomo Rubber Rise

Stocks in Japan traded higher for the second day in a row as the yen edged lower and companies report higher than expected earnings. NEC, Sumitomo Rubber and Orix estimated better than expected earnings.

The Nikkei 225 Stock Average gained 0.5% to 9,864.26 and the broader Topix index increased 0.1% to 857.62.

The yen traded as low as 116.90 and the depreciated to 80.10 to a dollar.

The latest report from the Finance Ministry confirmed that the Bank of Japan conducted a currency intervention on March 18 and sold 692.5 billion yen to buy dollars.

The intervention was carried out after the agreement with the Group of Seven nations to stem the sharp rise in the yen after the March 11 earthquake.

Automakers led the rally on the speculation that supply chain worries are easing and companies are likely to return to normal production sooner than expected.

Tepco also surged after it agreed to conditions laid out by the government to compensate victims.

Stock Movers

Tokyo Electric or Tepco increased 8.5% to 525 yen after the troubled electric utility agreed to six conditions to receive government aid. The nuclear power plant operator agreed to a government monitoring and said it will pay full-compensation to those affected by the nuclear disaster.

Automakers closed higher on a speculation that the companies are making steady recovery and part supplies problems are easing.

Honda Motor increased 2.1% to 3,130 yen and Nissan Motor gained 2% to 784 yen. Toyota Motor advanced 1.5%. Suzuki Motor, Hino Motors and Isuzu Motors closed higher as well.

Resource linked stocks gained after crude oil and base metals gained. Crude oil traded as high as $103 a barrel but eased in Tokyo trading but immediate moth delivery futures of copper, zinc and gold gained.

Inpex Corp increased 1% to 584,000 yen and Japan Petroleum Exploration Co. gained 1.7% to 3,935 yen.

Sumitomo Rubber Industries Ltd increased 4.9% to 940 yen after the second largest tire maker estimated full year profit outlook by 28%.

Orix gained 4% to 8.020 yen after the financial services company estimated current fiscal year net to increase 15% to 77.5 billion yen.

NEC added 4.7% to 177 yen after a day ago company estimated profit in the current year of 15 billion yen compared to a loss in the year ago period.

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