By Patrick Rial and Kotaro Tsunetomi
Nov. 5 (Bloomberg) -- Japanese stocks extended a rally from a 26-year low as a rise in commodities prices sparked gains by resource companies and amid speculation U.S. president-elect Barack Obama will take additional steps to spur economic growth.
Inpex Holdings Inc. and Japan Petroleum Exploration Co., the nation's biggest oil explorers, jumped more than 12 percent after crude surged the most in six weeks. Honda Motor Co. climbed 13 percent on speculation U.S. lawmakers may push for more policies to boost growth. Mizuho Financial Group Inc., Japan's No. 2 listed bank, gained 16 percent as tumbling money market rates indicated credit is easing. Sumitomo Heavy Industries Ltd. soared the most in 22 years after profit exceeded its forecast.
The Nikkei 225 Stock Average rose 406.64, or 4.5 percent, to 9,521.24 at the close of trading in Tokyo. The gauge has rebounded 33 percent from a 26-year low on Oct. 27. The broader Topix index surged 56.21, or 6.2 percent, to 966.91, its third largest advance this year.
``The hopes are that the incoming president will start formulating some new economic relief measures,'' said Hiroshi Chano, who helps manage $7.3 billion at Yasuda Asset Management Co. in Tokyo. ``This market is oversold, and people are jumping back in as dividends remain high and there are some stocks with solid earnings outlooks. The Nikkei should be heading back to 10,000 soon.''
Democrat Obama defeated Republican John McCain to become the 44th U.S. president. Obama crossed the requisite threshold of 270 electoral votes clinch victory when television networks declared him the winner in the state of California.
The Standard & Poor's 500 Index jumped 4.1 percent in New York yesterday, the biggest presidential Election Day rally in 24 years, as oil rose and people briefed on the matter said the government may broaden the focus of its rescue program.
To contact the reporters for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Kotaro Tsunetomi in Tokyo at ktsunetomi@bloomberg.net
Posts
No comments:
Post a Comment