Japan's Nikkei average is likely to move narrowly on Wednesday as it nudges nearer the psychologically key 10,000 mark, but technology stocks may gain after Texas Instruments' improved outlook lifted their peers on Wall Street.
Traders will also be watching Japan's machinery orders data due before the start of trade. Core orders, a leading indicator of capital spending, are seen rising 0.4 percent in April as signs mount that a sharp decline in corporate activity is starting to abate.
Kobe Steel and Showa Denko may attract attention after the Nikkei business daily said six Japan firms including the two will end aluminium smelting operations in Venezuela due to a dispute over prices with the Venezuelan government, their joint venture partner.
''The Nikkei average is facing headwinds right before the 10,000 mark,'' said Hiroichi Nishi, general manager at Nikko Cordial Securities.
''Investors are cautious, partly as the market seems overheated, and also ahead of the settlement of Nikkei options and futures later in the week and a string of important economic indicators such as machinery data and U.S. retail sales.'' But Nishi said investors will likely buy on dips, encouraged by optimism that the global economy may have hit a floor.
Nikkei futures traded in Chicago ended at 9,815 on Tuesday, up 0.4 percent from the Osaka close, pointing to a slightly higher start.
Market participants expect the benchmark Nikkei to move between 9,700 and 9,850 on Wednesday. It fell 0.8 percent the previous day to end at 9,786.82.
The Nasdaq Composite Index rose 1 percent on Tuesday, after Texas Instruments raised its quarterly earnings and revenue targets, signaling improving demand in the chip market and lifting shares of technology firms.
STOCKS TO WATCH -- Sony Corp, Panasonic Corp Falling prices of televisions and other products are expected to depress operating profits at Sony and Panasonic by about 1 trillion yen ($10.2 billion) combined in the year through next March, the Nikkei business daily reported.
-- Toshiba Corp Toshiba expects to generate about 130 billion yen of positive free cash flow this fiscal year, a turnaround from the 351.3 billion yen of negative free cash flow in fiscal 2008, the Nikkei business daily reported.
-- Mizuho Financial Group Inc Mizuho, Japan's second-largest bank, said it will cut the conversion price for preferred stock issued in spring 2003 that will raise the number of common shares investors receive, the Nikkei business daily reported.
-- Softbank Corp Softbank said it would begin sales of its new iPhone 3GS in Japan from June 26, priced at 11,520 yen for the 16-gigabyte model and 23,040 yen for a 32-gigabyte model.
Showing posts with label Nikkei. Show all posts
Showing posts with label Nikkei. Show all posts
Wednesday, June 10, 2009
Monday, June 8, 2009
Nikkei hits 8-mth high on yen, US economy hopes
Japan's Nikkei average hit its highest point in eight months on Monday, buoyed by a weaker yen that pushed up exporters such as Canon Inc and by hopes for a recovery in the U.S. economy after it shed fewer jobs than expected in May.
JGC Corp shot up nearly 5 percent after the Nikkei business daily reported on Monday that the plant engineering firm won a 150 billion yen ($1.5 billion) order for a natural gas project in Algeria.
Market players said the Nikkei could soon reach the psychologically important 10,000 mark, but they cautioned that the road to a recovery for the global economy is set to be rocky.
''The rate of deterioration in the economy is slowing, though it's not as if economic indicators are all turning positive from negative yet,'' said Takahiko Murai, general manager of equities at Nozomi Securities.
''Money is flowing into assets such as commodities and stocks as risk tolerance has steadily improved on the back of hopes for a recovery. But we are still not in a position to be overly optimistic over the medium to long term.'' In subdued trade, the benchmark Nikkei rose 1 percent or 97.83 points to 9,865.84, after rising as much as 1.5 percent to reach its highest level since Oct. 8.
That followed a 2.6 percent gain made last week, and a rise of almost 8 percent in May. So far, it has recovered about 40 percent from its March lows on a growing view that the worst may have passed for the global economy.
The broader Topix also added 1 percent, to 925.49.
The U.S. Labor Department reported on Friday that employers cut 345,000 jobs in May -- substantially less than analysts had forecast -- but the U.S. unemployment rate hit 9.4 percent, its highest since 1983.
U.S. stocks flip-flopped throughout Friday's session, with the major indexes ending split as investors paused to consider conflicting signals in the jobs data.
''Investors are welcoming the weaker yen and the better-than-expected U.S. jobs report,'' said Yutaka Miura, senior technical analyst at Mizuho Securities.
''But investors will need to be cautious as unemployment in the United States may increase, considering what may happen with GM's restructuring.'' General Motors last week filed for bankruptcy in the third-biggest such filing in U.S. history and the largest ever in U.S. manufacturing.
EXPORTERS LEAD GAINS The dollar was fetching around 98.40 yen after hitting a one-month high at 98.90 yen on EBS on Friday as the smaller-than-expected U.S. job losses sparked concerns that the Federal Reserve may lift interest rates sooner than previously thought.
In the stock market, investors cheer a softer yen as it boosts exporters' profits when they are repatriated.
Digital camera maker Canon jumped 4 percent to 3,380 yen and Sony Corp added 1.5 percent to 2,735 yen.
Toyota Motor Corp rose 1.8 percent to 3,930 yen, after the Nikkei business daily said on Sunday that Toyota, the world's biggest automaker, is targeting 100 billion yen ($1.1 billion) in cost cuts for compact car production.
Honda Motor Co advanced 3 percent to 2,935 yen, while Nissan Motor Co was up 0.8 percent at 603 yen.
Shares of JGC Corp gained 4.9 percent to 1,616 yen.
Shares of Nomura Holdings Inc rose 2.9 percent to 785 yen after Morgan Stanley raised its rating on Japan's largest brokerage to ''overweight'' from ''equal-weight'', citing an improved medium-term profit outlook.
Chip-related stocks declined after Intel Corp, the world's top chip maker, slid on Friday in the wake of an industry forecast for a steep drop in global chip sales. The Philadelphia semiconductor index dropped nearly 2 percent.
Advantest Corp, the world's No.2 maker of chip testing machines, slipped 0.7 percent to 1,883 yen, while Tokyo Electron Ltd shed 2.5 percent to 4,780 yen to become the top drag on the Nikkei 225.
Some 1.1 billion shares changed hands on the Tokyo exchange's first section, almost in line with last week's morning average of 1.2 billion.
Advancing stocks outnumbered decling ones by more than 3 to 1.
JGC Corp shot up nearly 5 percent after the Nikkei business daily reported on Monday that the plant engineering firm won a 150 billion yen ($1.5 billion) order for a natural gas project in Algeria.
Market players said the Nikkei could soon reach the psychologically important 10,000 mark, but they cautioned that the road to a recovery for the global economy is set to be rocky.
''The rate of deterioration in the economy is slowing, though it's not as if economic indicators are all turning positive from negative yet,'' said Takahiko Murai, general manager of equities at Nozomi Securities.
''Money is flowing into assets such as commodities and stocks as risk tolerance has steadily improved on the back of hopes for a recovery. But we are still not in a position to be overly optimistic over the medium to long term.'' In subdued trade, the benchmark Nikkei rose 1 percent or 97.83 points to 9,865.84, after rising as much as 1.5 percent to reach its highest level since Oct. 8.
That followed a 2.6 percent gain made last week, and a rise of almost 8 percent in May. So far, it has recovered about 40 percent from its March lows on a growing view that the worst may have passed for the global economy.
The broader Topix also added 1 percent, to 925.49.
The U.S. Labor Department reported on Friday that employers cut 345,000 jobs in May -- substantially less than analysts had forecast -- but the U.S. unemployment rate hit 9.4 percent, its highest since 1983.
U.S. stocks flip-flopped throughout Friday's session, with the major indexes ending split as investors paused to consider conflicting signals in the jobs data.
''Investors are welcoming the weaker yen and the better-than-expected U.S. jobs report,'' said Yutaka Miura, senior technical analyst at Mizuho Securities.
''But investors will need to be cautious as unemployment in the United States may increase, considering what may happen with GM's restructuring.'' General Motors last week filed for bankruptcy in the third-biggest such filing in U.S. history and the largest ever in U.S. manufacturing.
EXPORTERS LEAD GAINS The dollar was fetching around 98.40 yen after hitting a one-month high at 98.90 yen on EBS on Friday as the smaller-than-expected U.S. job losses sparked concerns that the Federal Reserve may lift interest rates sooner than previously thought.
In the stock market, investors cheer a softer yen as it boosts exporters' profits when they are repatriated.
Digital camera maker Canon jumped 4 percent to 3,380 yen and Sony Corp added 1.5 percent to 2,735 yen.
Toyota Motor Corp rose 1.8 percent to 3,930 yen, after the Nikkei business daily said on Sunday that Toyota, the world's biggest automaker, is targeting 100 billion yen ($1.1 billion) in cost cuts for compact car production.
Honda Motor Co advanced 3 percent to 2,935 yen, while Nissan Motor Co was up 0.8 percent at 603 yen.
Shares of JGC Corp gained 4.9 percent to 1,616 yen.
Shares of Nomura Holdings Inc rose 2.9 percent to 785 yen after Morgan Stanley raised its rating on Japan's largest brokerage to ''overweight'' from ''equal-weight'', citing an improved medium-term profit outlook.
Chip-related stocks declined after Intel Corp, the world's top chip maker, slid on Friday in the wake of an industry forecast for a steep drop in global chip sales. The Philadelphia semiconductor index dropped nearly 2 percent.
Advantest Corp, the world's No.2 maker of chip testing machines, slipped 0.7 percent to 1,883 yen, while Tokyo Electron Ltd shed 2.5 percent to 4,780 yen to become the top drag on the Nikkei 225.
Some 1.1 billion shares changed hands on the Tokyo exchange's first section, almost in line with last week's morning average of 1.2 billion.
Advancing stocks outnumbered decling ones by more than 3 to 1.
Friday, June 5, 2009
Nikkei edges up, but nerves about data cap gains
Japan's Nikkei stock average rose 0.6 per cent on Friday, buoyed by resource and energy shares amid high commodity prices as US data fed hopes the economic slump is waning, though nerves about looming non-farm payrolls data capped gains.
Mizuho Financial Group and other banks gained after their US peers rose on a sector upgrade by RBC Capital Markets, and Canon Inc climbed on news it was reviving shelved plans to build a factory.
But market analysts said gains were likely to be limited ahead of U.S. jobs data due later in the day.
''If the numbers are better than expected investors will get confirmation that the economy's really improving, but there's worry about what will happen if the figures are worse than consensus,'' said Yumi Nishimura, a deputy general manager of the investment advisory section at Daiwa Securities SMBC.
''It does seem as if we're seeing signs that the falls in world markets have stopped, but it's still a bit early to say much more than that.'' Wall Street rose on renewed hopes for economic recovery after first-time U.S. jobless claims fell for a third straight week and the number of people remaining on benefit rolls fell for the first time since the start of the year.
But some analysts were sceptical, noting that the claims may have fallen due to the long Memorial Day holiday and that most retailers' May sales missed expectations.
''Perhaps now that people have the time to really look at both sets of data, pessimism about the sales data may be overpowering the encouragement of jobless claims,'' said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.
The benchmark Nikkei gained 56.78 points to 9,725.74, while the broader Topix rose 0.4 percent to 914.53.
OIL GAINS Oil climbed to a seven-month high on Thursday and rose above $69 a barrel on Friday, after the drop in jobless claims, which boosted expectations of an economic recovery that could revive ailing energy demand.
Goldman Sachs said a potential economic rebound alongside production cuts by the OPEC cartel could propel crude to $85 a barrel by the end of the year and to $95 a barrel by the end of 2010.
Oil and gas field developer Inpex climbed 6.8 percent to 845,000 yen and Nippon Oil gained 3.3 percent to 597 yen. Showa Shell Sekiyu rose 1.8 percent to 943 yen.
Strong metals prices, especially copper, helped buoy trading houses, with Mitsubishi Corp up 2.4 percent at 1,910 yen and Mitsui & Co rising 3.1 percent to 1,300 yen. Itochu Corp rose 1.7 percent to 717 yen.
Banks gained too, with Sumitomo Mitsui Financial Group up 2.9 percent to 3,850 yen and Mizuho Financial climbing 1.3 percent to 241 yen.
''There's a sense that banks have been lagging a bit on the recent rebound,'' Daiwa SMBC's Nishimura said.
Tokyo Electron jumped 4.7 percent to 4,880 yen, Advantest Corp rose 3 percent to 1,875 yen, and Sony Corp rose 1.9 percent to 2,690 yen.
Mazda Motor Corp surged 8.8 percent to 273 yen after Nikko Citigroup raised its rating on the automaker to ''buy/medium risk'' from ''hold/medium risk'' and lifted its target price to 350 yen from 270 yen.
In a note to clients Nikko Citigroup said it expects Mazda to return to profitability in the fourth quarter and forecast an operating loss of 40 billion yen for the year to March 2010, against Mazda's forecast for a loss of 50 billion yen.
Trade was active, with 1.2 billion shares changing hands on the Tokyo Exchange's first section compared with last week's morning average of 1 billion.
Advancing shares outnumbered declining ones 827 to 698.
Mizuho Financial Group and other banks gained after their US peers rose on a sector upgrade by RBC Capital Markets, and Canon Inc climbed on news it was reviving shelved plans to build a factory.
But market analysts said gains were likely to be limited ahead of U.S. jobs data due later in the day.
''If the numbers are better than expected investors will get confirmation that the economy's really improving, but there's worry about what will happen if the figures are worse than consensus,'' said Yumi Nishimura, a deputy general manager of the investment advisory section at Daiwa Securities SMBC.
''It does seem as if we're seeing signs that the falls in world markets have stopped, but it's still a bit early to say much more than that.'' Wall Street rose on renewed hopes for economic recovery after first-time U.S. jobless claims fell for a third straight week and the number of people remaining on benefit rolls fell for the first time since the start of the year.
But some analysts were sceptical, noting that the claims may have fallen due to the long Memorial Day holiday and that most retailers' May sales missed expectations.
''Perhaps now that people have the time to really look at both sets of data, pessimism about the sales data may be overpowering the encouragement of jobless claims,'' said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.
The benchmark Nikkei gained 56.78 points to 9,725.74, while the broader Topix rose 0.4 percent to 914.53.
OIL GAINS Oil climbed to a seven-month high on Thursday and rose above $69 a barrel on Friday, after the drop in jobless claims, which boosted expectations of an economic recovery that could revive ailing energy demand.
Goldman Sachs said a potential economic rebound alongside production cuts by the OPEC cartel could propel crude to $85 a barrel by the end of the year and to $95 a barrel by the end of 2010.
Oil and gas field developer Inpex climbed 6.8 percent to 845,000 yen and Nippon Oil gained 3.3 percent to 597 yen. Showa Shell Sekiyu rose 1.8 percent to 943 yen.
Strong metals prices, especially copper, helped buoy trading houses, with Mitsubishi Corp up 2.4 percent at 1,910 yen and Mitsui & Co rising 3.1 percent to 1,300 yen. Itochu Corp rose 1.7 percent to 717 yen.
Banks gained too, with Sumitomo Mitsui Financial Group up 2.9 percent to 3,850 yen and Mizuho Financial climbing 1.3 percent to 241 yen.
''There's a sense that banks have been lagging a bit on the recent rebound,'' Daiwa SMBC's Nishimura said.
Tokyo Electron jumped 4.7 percent to 4,880 yen, Advantest Corp rose 3 percent to 1,875 yen, and Sony Corp rose 1.9 percent to 2,690 yen.
Mazda Motor Corp surged 8.8 percent to 273 yen after Nikko Citigroup raised its rating on the automaker to ''buy/medium risk'' from ''hold/medium risk'' and lifted its target price to 350 yen from 270 yen.
In a note to clients Nikko Citigroup said it expects Mazda to return to profitability in the fourth quarter and forecast an operating loss of 40 billion yen for the year to March 2010, against Mazda's forecast for a loss of 50 billion yen.
Trade was active, with 1.2 billion shares changing hands on the Tokyo Exchange's first section compared with last week's morning average of 1 billion.
Advancing shares outnumbered declining ones 827 to 698.
Subscribe to:
Posts (Atom)
