TMCnet News
Stocks Closing UPDATE1(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, May 15 -- (Kyodo) _ (EDS: ADDING DETAILS, PRICES) The Nikkei index gained over 2 percent to end above the 15,000 mark Wednesday for the first time since December 2007, propelled by a falling yen and buoyant global equities. The 225-issue Nikkei Stock Average closed up 337.61 points, or 2.29 percent, from Tuesday at 15,096.03, the highest closing level since December 28, 2007, when it ended at 15,307.78. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 22.05 points, or 1.79 percent, at 1,252.85, the highest level since Aug. 29, 2008, when it finished at 1,254.71. Gainers were led by automakers, electric machinery firms and foods while decliners included consumer finance, construction and real estate developers. Export-oriented firms including Toyota Motor Corp. and Sony Corp. enjoyed hefty gains as the dollar climbed above the 102 yen line, up from the lower 101 yen range seen the previous day in Tokyo, boosting hopes of upbeat business performances for such companies, brokers said. The Nikkei briefly added more than 350 points. It has climbed more than 4,700 points, or 45 percent, in 2013. The market has been attracting "tremendous" demand from foreign investors, said Hiroichi Nishi, assistant general manager of equity research at SMBC Nikko Securities Inc. "There are signs of a brighter outlook for the global economy, while the dollar and euro are gaining ground against the yen due to overseas factors." He said sentiment had been lifted by firmer U.S. and German stocks among others after debt rating agency Fitch Ratings upgraded Greece's long-term credit rating and the U.S. small-business optimism index for April exceeded market expectations. "The dollar may soon hit even higher levels, such as the 105 yen mark," said Tsutomu Yamada, market analyst at kabu.com Securities Co., adding that expectations about the yen's falling further on the back of sound U.S. and Japanese economic outlooks are likely to continue buoying the market. Among automakers, Toyota Motor rose 230 yen, or 3.7 percent, to 6,440 yen and Honda Motor climbed 115 yen, or 2.8 percent, to 4,185 yen. Isuzu Motors surged 150 yen, or 20.8 percent, to 872 yen in response to a rise to a record high in the company's group net profit for fiscal 2012, released Tuesday. Electronics maker Sony soared 195 yen, or 10.4 percent, to 2,072 yen, after a U.S. hedge fund manager called for the firm to spin off its entertainment arm. The banking sector also fared well with Mitsubishi UFJ Financial Group climbing 22 yen, or 3.1 percent, to 732 yen following news reports that it is likely to raise its dividend for fiscal 2012 for the first time in five years. While many brokers expect the market to chase even higher ground, some expressed caution over a recent sharp rise in long-term bond yields, which began to weigh on issues sensitive to interest rates including real estate developers and consumer finance firms. Among such shares, Nomura Real Estate sagged 65 yen, or 2.5 percent, to 2,538 yen while Aiful plunged 300 yen, or 21.1 percent, to 1,123 yen. Also bucking the upward trend, struggling electronics maker Sharp slid 68 yen, or 12.8 percent, to 463 yen as investors were discouraged by a record group net loss the company posted for fiscal 2012. Despite the stocks' gains, falling issues outnumbered advancing ones 1,011 to 635, while 65 remained unchanged. Trading volume on the main section came to 5,752.84 million shares, up from Tuesday's 4,435.42 million shares. (c) 2013 Kyodo News International, Inc. |