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Japan's Nikkei Indeks Hits
Japan’s benchmark stock index hit a 10-month high Tuesday, buoyed by fresh U.S. manufacturing data that bolstered optimism about an economic recovery. The Nikkei 225 stock average rose 22.54 points, or 0.2 percent, to 10,375.01 — the highest closing level since Oct. 6. The broader Topix added 0.2 percent to 959.02.
Overnight on Wall Street, the Dow Jones industrials rose 1.3 percent to 9,286.56 after a report from the Institute for Supply Management, a trade group of purchasing executives, signaled U.S. manufacturing activity should grow next month for the first time since January 2008. The news, which sparked a rally in commodities, sent shares of Japanese trading houses sharply higher.
Oil prices fell slightly to near $71 a barrel Tuesday in Asia, following a $2.13 rise to $71.58 Monday. Mitsubishi Corp. climbed 2.1 percent to 1,956 yen, and Sumitomo Corp. jumped 3.7 percent to 960 yen.
Mitsui & Co. soared 5.7 percent to 1,247 yen. Investors cheered solid earnings for the major trading company, which said its April-June net profit dropped 44 percent from a year earlier to 57.3 billion yen. Shares of Panasonic Corp. rose 0.3 percent to 1,507 yen after its quarterly results beat expectations. The electronics maker said it posted a 52.98 billion yen ($558 million) loss but expects to return to the black in the months ahead.
“The company reported (fiscal) 1Q earnings that were above both our and the market consensus forecasts,” said Koyo Tabata, an analyst at Credit Suisse in Tokyo. “Restructuring appears to be accelerating, leaving us with a positive impression.”
Missing out on the gains were auto and motorcycle makers. Yamaha Motor Co. tumbled 9.9 percent to 1,096 yen amid a flood of sell orders. The company said that it swung into the red in the six months through June 30 and forecasts even deeper losses for the full year.
In currencies, the dollar was trading at 95.06 yen from 95.22 yen late Monday. The euro stood at $1.4385 from $1.4410.
Overnight on Wall Street, the Dow Jones industrials rose 1.3 percent to 9,286.56 after a report from the Institute for Supply Management, a trade group of purchasing executives, signaled U.S. manufacturing activity should grow next month for the first time since January 2008. The news, which sparked a rally in commodities, sent shares of Japanese trading houses sharply higher.
Oil prices fell slightly to near $71 a barrel Tuesday in Asia, following a $2.13 rise to $71.58 Monday. Mitsubishi Corp. climbed 2.1 percent to 1,956 yen, and Sumitomo Corp. jumped 3.7 percent to 960 yen.
Mitsui & Co. soared 5.7 percent to 1,247 yen. Investors cheered solid earnings for the major trading company, which said its April-June net profit dropped 44 percent from a year earlier to 57.3 billion yen. Shares of Panasonic Corp. rose 0.3 percent to 1,507 yen after its quarterly results beat expectations. The electronics maker said it posted a 52.98 billion yen ($558 million) loss but expects to return to the black in the months ahead.
“The company reported (fiscal) 1Q earnings that were above both our and the market consensus forecasts,” said Koyo Tabata, an analyst at Credit Suisse in Tokyo. “Restructuring appears to be accelerating, leaving us with a positive impression.”
Missing out on the gains were auto and motorcycle makers. Yamaha Motor Co. tumbled 9.9 percent to 1,096 yen amid a flood of sell orders. The company said that it swung into the red in the six months through June 30 and forecasts even deeper losses for the full year.
In currencies, the dollar was trading at 95.06 yen from 95.22 yen late Monday. The euro stood at $1.4385 from $1.4410.
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