By Yoshiaki Nohara - Mar 12, 2012 8:39 AM GMT+0700
March 12 (Bloomberg) -- The Nikkei 225 Stock Average (NKY) headed for its biggest three-day advance since October after better- than-expected U.S. jobs data boosted the earnings outlook for exporters. Shares also gained after Japanese machinery orders beat expectations.
Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, rose 0.8 percent after the yen reached a 10-month low against the dollar last week. Hitachi Construction Machinery Co. (6305) gained 1.7 percent. Commodities trader Mitsubishi Corp. (8058) added 0.4 percent as metal prices climbed.
The Nikkei 225 Stock Average advanced 0.3 percent to 9,962.62 as of 10:04 a.m. in Tokyo. The broader Topix Index gained 0.2 percent to 850.01 after adding 1.3 percent last week.
“The downside risk to U.S. growth is fairly limited from here,” said Andrew Pease, Sydney-based chief investment strategist for the Asia-Pacific region at Russell Investment Group, which manages about $150 billion. “Five months ago, the markets were so cheap because of fears of Europe’s financial meltdown and another U.S. downturn. Now that both of those fears have been alleviated somewhat, the markets have been reweighted.”
Futures on the Standard & Poor’s 500 Index (SPXL1) fell 0.2 percent today. The index rose 0.4 percent in New York on March 9 after a 227,000 increase in payrolls last month topped the median projection of economists in a Bloomberg News survey.
Yen Gains
The yen touched 82.65 per dollar on March 9, the lowest since April 27, boosting the value of overseas income at Japanese companies. The currency rose against all of its major counterparts today, weighing on gains in equities.
Stocks also advanced as euro-area finance ministers will gather in Brussels today to sign off on a 130 billion-euro ($170 billion) bailout package for Greece. The nation on March 9 completed a debt swap seen as key to containing Europe’s debt crisis.
A Japanese government report today showed machinery orders gained 3.4 percent in January after falling 7.1 percent in December.
Gains were limited after the 25-day Toraku index, which compares the number of advancing and declining shares on the Tokyo Stock Exchange, rose to 143 last week. A reading of more than 120 indicates to some investors that a loss is likely.
Quake Recovery
The Topix (TPX) has gained 11 percent since March 15 last year, when the measure plunged four days after the record earthquake and tsunami struck Japan’s northeast and caused a nuclear disaster. The gain, buoyed by global monetary easing and reconstruction demand, boosted the value of shares on the index to 1.24 times book value, compared with 1.12 in March 2011.
The Bank of Japan is starting two-day meeting at which it’s expected to keep interest rates unchanged, according to 12 of 14 economists surveyed by Bloomberg News. The central bank on Feb. 14 surprised the market by increasing its government bond purchase program and setting an inflation goal of 1 percent.
The London Metal Exchange Index of prices for six industrial metals including copper and aluminum rose 1.9 percent on March 9.
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
Posts
No comments:
Post a Comment