By Norie Kuboyama and Toshiro Hasegawa - Dec 26, 2011 7:59 AM GMT+0700
Japanese stocks gained, sending the Nikkei 225 Stock Average (NKY) set to rise to its highest in nearly two weeks, as U.S. unemployment claims unexpectedly dropped and orders for durable goods rose, boosting the earnings outlook for Asia’s exporters.
Honda Motor Co. (7267), a carmaker that gets more than 80 percent of its sales abroad, gained 1.8 percent. Mitsubishi Corp. (8058), Japan’s biggest commodities trader by revenue, rose 1.6 percent after oil and metals prices increased. Canon Inc. climbed 1.8 percent after the Nikkei newspaper said the camera maker may pay a 120 yen dividend this year.
The Nikkei 225 rose 1.3 percent to 8,506.27 as of 9:36 a.m. in Tokyo, set for the highest close since Dec. 14. The broader Topix rose 0.7 percent to 728.28, with almost three times as many shares rising as falling.
“The U.S. economy is improving more than expected,” said Hideyuki Ishiguro, assistant manager at the investment strategy department at Okasan Securities Co. in Tokyo. “Pessimism is easing among American consumers due to a recovery in the job market and some stability in the stock market.”
The Standard & Poor’s 500 Index (SPXL1) added 0.9 percent in New York on Dec. 23 as orders for durable goods rose by the most in four months and the number of applications for unemployment benefits unexpectedly dropped last week to the lowest since April 2008.
Commodity prices gained on speculation an economic recovery in the U.S. may spur demand for oil and industrial metals. Crude oil for February delivery gained 0.2 percent to $99.68 a barrel in New York on Dec. 23, the highest settlement since Dec. 13. The London Metal Exchange Index of prices for six metals including copper and aluminum rose 0.7 percent.
The following are among the most active shares in the Japanese market today. Stock symbols are in parentheses after company names.
Canon Inc. (7751) (7751 JT), the world’s biggest camera maker, gained 1.6 percent to 3,470 yen, after the Nikkei reported the company is likely to pay a 120 yen dividend for this year, matching last year’s record payment. Canon anticipates an earnings recovery next year after Thailand floods and a strengthening yen cut profit, the report said.
Ebara Corp. (6361) (6361 JT), a hydraulic pump maker, climbed 3.7 percent to 280 yen, after the Nikkei said Ebara will boost production capacity in Southeast Asia. The company will invest as much as 3 billion yen ($38 million) to double sales in the region in three years, the report said.
Japan Hotel & Resort Inc. (8981 JT) rallied 5.3 percent to 164,100 yen, while Nippon Hotel Fund Investment Corp. (8985) (8985 JT) slid 0.4 percent to 184,200 yen after the real estate investment trusts said they will merge on April 1. Japan Hotel will be delisted, according to a statement.
Makita Corp. (6586) (6586 JT), a maker of electric power tools, jumped 7.6 percent to 2,530 yen, headed for its biggest rise since March 16. The company said it will buy back up to 1.45 percent of its outstanding shares.
Tokyo Electric Power Co. (9501) (9501 JT), the utility known as Tepco, lost 3.2 percent to 215 yen after the Nikkei reported the company may seek several hundred billion yen in fresh aid to compensate nuclear disaster victims. The company received 890 billion yen in state assistance last month.
To contact the reporters on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
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