By Masaki Kondo
March 5 (Bloomberg) -- Japanese stocks gained as the yen’s depreciation and higher maritime-transport fees brightened the earnings prospects for automakers and shipping companies.
Mazda Motor Corp. soared 10 percent as the Japanese currency fell to the weakest level in four months, nearing 100 yen to the dollar. Mitsui O.S.K. Lines Ltd., the nation’s No. 2 shipping line, leapt 7 percent. Komatsu Ltd., the world’s No. 2 maker of earthmoving equipment, jumped 3.8 percent after Premier Wen Jiabao said China will spend more on infrastructure. Inpex Corp. rose 4.7 percent as crude neared a six-week high.
The Nikkei 225 Stock Average climbed 142.53, or 2 percent, to close at 7,433.49 in Tokyo, bringing its two-day gain to 2.8 percent. The broader Topix index rose 9.51, or 1.3 percent, to 741.55, with almost four shares increasing for each that fell.
“As people were worried the yen will strengthen beyond 90, the depreciation by this degree is a big positive surprise,” said Kiyoshi Ishigane, a senior strategist at Tokyo-based Mitsubishi UFJ Asset Management Co., which oversees about $61 billion. “Machinery makers will benefit from China’s infrastructure investment, and a recovery in trading will lead to better earnings at shipping companies.”
The daily value of stocks traded in Tokyo has remained below its one-year average of 2.1 trillion yen ($21 billion) since Jan. 7 as the global recession damped trading. Profit estimates for the Nikkei’s constituents have dropped 94 percent through yesterday from a one-year high on April 2, according to Bloomberg data.
The yen depreciated against the dollar to as much as 99.53 today, the weakest since Nov. 5, from 98.44 at the close of stock trading in Tokyo yesterday. A weaker local currency boosts the repatriated value of overseas sales for Japanese exporters.
Carmakers, Shippers
Mazda, Japan’s No. 4 automaker, surged 10 percent to 137 yen, while bigger competitor Nissan Motor Co. added 6.1 percent to 330 yen. Honda Motor Co., which gets more than half its profit from North America, increased 2.5 percent 2,260 yen.
Mitsui O.S.K. advanced 7 percent to 502 yen, the sharpest increase since Dec. 15. Market leader Nippon Yusen K.K. rose 4.9 percent to 405 yen for its first gain in five days, and Kawasaki Kisen Kaisha Ltd. added 4.1 percent to 308 yen.
A gauge of shipping lines posted the steepest jump among the Topix’s 33 industry groups. The Baltic Dry Index, a measure of shipping costs for commodities, added 2.5 percent yesterday, the most since Feb. 19.
Wen today reiterated his nation’s 8 percent growth target and said China will “significantly increase” government investment in 2009, without elaborating. Public spending, mostly on infrastructure, will more than double to 908 billion yuan, Wen said.
Machinery, Resources
Komatsu, whose China sales grew in the nine months to December while those in North America and Europe fell, jumped 3.8 percent to 1,075 yen. Hitachi Construction Machinery Co., which gets 15 percent of its sales from China, leapt 2.7 percent to 1,246 yen, extending yesterday’s 7.4 percent advance. Nippon Yusoki Co., which makes forklifts, rose 4 percent to 206 yen.
Speculation China’s economy will pick up steam drove up commodity prices yesterday. Crude oil for April delivery surged 9 percent to $45.38, the highest settlement since Jan. 26. Copper futures for May delivery leapt 5.6 percent.
Inpex, Japan’s biggest oil explorer, added 4.7 percent to 644,000 yen, while rival Japan Petroleum Exploration Co. advanced 7.1 percent to 3,620 yen. Nippon Mining Holdings Inc., the nation’s top copper producer, gained 2.7 percent to 341 yen.
“China’s stimulus is good news, but I’m waiting to see what kind of positive impact it has on the global economy,” said Yoshihisa Okamoto, who helps oversee $26 billion at Mizuho Asset Management Co. “The slump in Japan’s economy is deep, and I doubt infrastructure investment alone can save it.”
China’s Shanghai Composite Index fluctuated today, drifting between a 2 percent gain and a 1.1 percent drop.
Nikkei futures expiring in March added 1.9 percent to 7,410 in Osaka and climbed 1.9 percent to 7,405 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
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