ID :
10161
Tue, 06/17/2008 - 10:58
Auther :
Shortlink :
https://oananews.org//node/10161
The shortlink copeid
Tokyo stocks rise over 2% on stronger dollar, eased inflation fears
Tokyo, June 17 Kyodo - Tokyo stocks closed over 2 percent higher Monday on the U.S. dollar's appreciation relative to the yen and eased inflation fears.
The 225-issue Nikkei Stock Average gained 380.64 points, or 2.72 percent, from
Friday to 14,354.37, recovering the 14,000 level logged last Wednesday.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange
was up 30.12 points, or 2.20 percent, to 1,401.69.
Gainers were led by real estate, sea transport and trading house issues. Major
decliners included mining, and oil and coal product issues.
Brokers said investors were cheered by the dollar's stability at the 108 yen
level since Friday, underpinned by a market view that Group of Eight finance
ministers gave tacit support for a strong dollar at their meeting in Osaka on
the weekend.
Among export-oriented auto and high-tech issues, Toyota Motor advanced 160 yen,
or nearly 3 percent, to 5,650 yen, and Sony gained 140 yen, or nearly 3
percent, to 5,350 yen.
Mitsubishi Motors was up 4 yen, or nearly 2 percent, to 205 yen, on a report
Monday by the Japanese business daily Nikkei that the Japanese automaker is set
to tie up with PSA Peugeot Citroen Group on electric cars, providing related
technologies and lithium-ion batteries.
The G-8 ministers, in the statement they released after their two-day meeting
through Saturday, included no reference to foreign exchange markets.
But U.S. Treasury Secretary Henry Paulson reiterated a strong-dollar policy
Saturday, saying, ''With regard to the dollar, my view has not changed, that a
strong dollar is in our nation's interest.''
Other officials such as French finance minister Christine Lagarde reportedly
showed satisfaction with the U.S. stance, brokers said.
''Although the statement contained no reference to the currency market, there
was a view among market participants that ministers tacitly supported a
stronger dollar,'' said Hiroichi Nishi, the equities chief at Nikko Cordial
Securities Inc.
A stronger dollar boosts the value of Japanese exporters' overseas earnings
when they are repatriated.
Yutaka Shiraki, a senior equity strategist at Mitsubishi UFJ Securities Co.,
said the Tokyo market was finally reacting positively to the weaker yen since
it was unable to do so last week because it was preoccupied with fears over
inflation.
''People kept on talking about inflation but the market took a break from this
concern after (data released Friday showed) the U.S. consumer price index (for
May) did not rise that much,'' Shiraki said.
The U.S. consumer price index rose 0.6 percent in May from the previous month,
slightly above the market projection of a 0.5 percent increase, while the core
inflation reading, excluding food and energy prices, was in line with the
market's forecast of a 0.2 percent rise, the Labor Department said Friday.
Brokers said the Tokyo market also got a lift from gains on Wall Street Friday
as fears of inflation receded partly in reaction to the stable price data.
But oil-related shares, which have been riding on continued surging crude oil
prices, fell as oil prices dropped Friday to $134.86 a barrel from an all-time
high above $139 a barrel hit June 6.
Inpex Holdings fell 50,000 yen, or nearly 4 percent, to 1,280,000 yen, and
Idemitsu Kosan dropped 180 yen, or nearly 2 percent, to 10,200 yen.
Meanwhile, a noticeable decliner was Goldwin, a distributor in Japan of Speedo
swimwear that last week benefited from the ''Speedo brand'' effect after
athletes wearing Speedo swimsuits set new records. Goldwin lost 27 yen, or over
7 percent, to 353 yen, as investors sold Goldwin for quick profits.
On the First Section, advancing issues outnumbered declining ones 1,314 to 318,
with 92 others remaining unchanged.
Value leader Mizuho Financial Group rose 18,000 yen, or over 3 percent, to
565,000 yen, and volume leader GS Yuasa was up 51 yen, or over 10 percent, to
532 yen.
Trading volume on the main section came to 1,888.98 million shares, down from
Friday's 3,108.99 million.
The TSE's Second Section index was up 15.28 points, or 0.52 percent, to
2,962.13 on a volume of 46.45 million shares. On the Osaka Securities Exchange,
the near-term September Nikkei 225 index futures contract was up 360 points to 14,340. ==Kyodo
The 225-issue Nikkei Stock Average gained 380.64 points, or 2.72 percent, from
Friday to 14,354.37, recovering the 14,000 level logged last Wednesday.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange
was up 30.12 points, or 2.20 percent, to 1,401.69.
Gainers were led by real estate, sea transport and trading house issues. Major
decliners included mining, and oil and coal product issues.
Brokers said investors were cheered by the dollar's stability at the 108 yen
level since Friday, underpinned by a market view that Group of Eight finance
ministers gave tacit support for a strong dollar at their meeting in Osaka on
the weekend.
Among export-oriented auto and high-tech issues, Toyota Motor advanced 160 yen,
or nearly 3 percent, to 5,650 yen, and Sony gained 140 yen, or nearly 3
percent, to 5,350 yen.
Mitsubishi Motors was up 4 yen, or nearly 2 percent, to 205 yen, on a report
Monday by the Japanese business daily Nikkei that the Japanese automaker is set
to tie up with PSA Peugeot Citroen Group on electric cars, providing related
technologies and lithium-ion batteries.
The G-8 ministers, in the statement they released after their two-day meeting
through Saturday, included no reference to foreign exchange markets.
But U.S. Treasury Secretary Henry Paulson reiterated a strong-dollar policy
Saturday, saying, ''With regard to the dollar, my view has not changed, that a
strong dollar is in our nation's interest.''
Other officials such as French finance minister Christine Lagarde reportedly
showed satisfaction with the U.S. stance, brokers said.
''Although the statement contained no reference to the currency market, there
was a view among market participants that ministers tacitly supported a
stronger dollar,'' said Hiroichi Nishi, the equities chief at Nikko Cordial
Securities Inc.
A stronger dollar boosts the value of Japanese exporters' overseas earnings
when they are repatriated.
Yutaka Shiraki, a senior equity strategist at Mitsubishi UFJ Securities Co.,
said the Tokyo market was finally reacting positively to the weaker yen since
it was unable to do so last week because it was preoccupied with fears over
inflation.
''People kept on talking about inflation but the market took a break from this
concern after (data released Friday showed) the U.S. consumer price index (for
May) did not rise that much,'' Shiraki said.
The U.S. consumer price index rose 0.6 percent in May from the previous month,
slightly above the market projection of a 0.5 percent increase, while the core
inflation reading, excluding food and energy prices, was in line with the
market's forecast of a 0.2 percent rise, the Labor Department said Friday.
Brokers said the Tokyo market also got a lift from gains on Wall Street Friday
as fears of inflation receded partly in reaction to the stable price data.
But oil-related shares, which have been riding on continued surging crude oil
prices, fell as oil prices dropped Friday to $134.86 a barrel from an all-time
high above $139 a barrel hit June 6.
Inpex Holdings fell 50,000 yen, or nearly 4 percent, to 1,280,000 yen, and
Idemitsu Kosan dropped 180 yen, or nearly 2 percent, to 10,200 yen.
Meanwhile, a noticeable decliner was Goldwin, a distributor in Japan of Speedo
swimwear that last week benefited from the ''Speedo brand'' effect after
athletes wearing Speedo swimsuits set new records. Goldwin lost 27 yen, or over
7 percent, to 353 yen, as investors sold Goldwin for quick profits.
On the First Section, advancing issues outnumbered declining ones 1,314 to 318,
with 92 others remaining unchanged.
Value leader Mizuho Financial Group rose 18,000 yen, or over 3 percent, to
565,000 yen, and volume leader GS Yuasa was up 51 yen, or over 10 percent, to
532 yen.
Trading volume on the main section came to 1,888.98 million shares, down from
Friday's 3,108.99 million.
The TSE's Second Section index was up 15.28 points, or 0.52 percent, to
2,962.13 on a volume of 46.45 million shares. On the Osaka Securities Exchange,
the near-term September Nikkei 225 index futures contract was up 360 points to 14,340. ==Kyodo
