By Masaki Kondo
Nov. 10 (Bloomberg) -- Japan shares rose for the first time in three days, led by shipping and resource companies, after China announced a fiscal stimulus plan, joining global efforts to revive economic growth.
Nippon Yusen K.K., Japan's largest shipping line, jumped 8.8 percent after China pledged a 4 trillion-yuan ($586 billion) spending package. Nippon Steel Corp., the world's second-biggest maker of the alloy, leapt 6.3 percent after the Group of 20 nations called for interest-rate cuts and higher government spending. Sony Corp. rose 9.2 percent after the yen weakened.
The Nikkei 225 Stock Average climbed 460.91, or 5.4 percent, to 9,043.91 as of 9:53 a.m. in Tokyo. The broader Topix index rose 38.69, or 4.4 percent, to 917.69. All 33 industry groups on the Topix advanced.
``Governments and businesses are working on solutions to the slowdown plaguing economies and earnings, which may bring us some positive surprises,'' Tomochika Kitaoka, a Tokyo-based strategist at Mizuho Securities Co., said in an interview with Bloomberg Television. ``Given demand is waning, government spending will be a welcome boost to economies.''
The Group of 20 nations said yesterday after a meeting in Sao Paulo that it's ready to act ``urgently'' to bolster economic growth, and that governments should use all measures at their disposal, including monetary and fiscal policy steps, in this effort. The same day, China's State Council announced an economic plan ranging from tax deductions for equipment purchases to infrastructure investments.
Japanese machinery orders rose 5.5 percent in September, the Cabinet Office said today, an increase the government described as a ``weak rebound.'' Economists predicted a 5.2 percent gain in September.
Chinese Infrastructure
Nippon Yusen jumped 8.8 percent to 495 yen, while closest rival Mitsui O.S.K. Lines Ltd. gained 9.2 percent to 510 yen. Komatsu Ltd., the world's second-biggest maker of earthmoving equipment, soared 9.6 percent to 1,228 yen.
Nippon Steel climbed 6.3 percent to 322 yen, and JFE Holdings Inc., Japan's No. 2 steelmaker, advanced 8.8 percent to 2,585 yen. Sumitomo Metal Industries Ltd. rose 6.6 percent to 258 yen. China's package, of which 100 billion yuan is earmarked for this quarter, will go toward low-rent housing, infrastructure in rural areas, as well as roads, railways and airports.
Concern lingers that the worldwide economy will fall into a recession after the collapse of the U.S. mortgage market triggered a credit crisis. The MSCI World Index has lost 41 percent of its value so far this year, and $29 trillion has been shed from global stock markets.
Oil, Currency
In the U.S., the jobless rate rose to 6.5 percent in October, the highest level since 1994, the Labor Department reported on Nov. 7. There is a 97 percent chance the Federal Reserve will cut its interbank lending rate at its Dec. 16 meeting, according to futures on the Chicago Board of Trade.
Inpex Corp., Japan's largest oil and gas explorer, rose 8.4 percent to 592,000 yen, while closest competitor Japan Petroleum Exploration Co. added 8.8 percent to 4,080 yen. Crude oil for December delivery rose as much as 4 percent today on speculation China's economic plan will help sustain demand for fuel.
Sony, a consumer-electronics maker that gets a quarter of its sales from the U.S., surged 9.2 percent to 2,380 yen, and bigger rival Panasonic Corp. gained 5.8 percent to 1,617 yen. Canon Inc., the world's biggest digital-camera maker, rose 4.9 percent to 3,430 yen.
The yen weakened against the dollar to as much as 99.37 today from 97.50 at the close of stock trading in Tokyo on Nov. 7, while depreciating against the euro to as much as 127.91 from 124.13.
Nikkei futures expiring in December added 4.5 percent to 9,050 in Osaka and gained 4.9 percent to 9,040 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
Posts
No comments:
Post a Comment