Tokyo stocks edge up amid expectation of limited earthquake impact
TOKYO (Kyodo) -- Tokyo stocks edged up Tuesday, with the Nikkei index ending at a 10-and-a-half-month high after a solid U.S. stock performance overnight, amid expectations that the strong earthquake that hit northeastern Japan earlier in the day would have a limited impact.
The 225-issue Nikkei Stock Average ended up 56.92 points, or 0.31 percent, from Monday at 18,162.94. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 4.57 points, or 0.32 percent, higher at 1,447.50.
Gainers were led by mining, iron and steel, and information and communication issues.
The Nikkei index ended higher for the fifth straight session after fluctuating between gains and losses in early trading as the market tried to predict what impact the earthquake, with a magnitude of 7.4, could have on the economy.
There were no reports of any major damage during trading after the quake hit before the market opened.
"For now, the economic impact of the quake and tsunami seems to be limited, which is calming down the market," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co.
"The news of a Fukushima nuclear plant cooling system halting scared the market but operations have now resumed, providing great relief for investors."
Tokyo Electric Power Company Holdings Inc. said Tuesday morning that a nuclear fuel cooling facility for the Fukushima Daini power plant's No. 3 reactor building temporarily stopped operating.
Fujito also said shares remained supported after all three major U.S. equity benchmarks -- the Dow Jones Industrial Average, the S&P 500 Index and the Nasdaq Composite Index -- ended at record highs overnight in New York.
Meanwhile, the yen advanced against the U.S. dollar following the quake, weighing on sentiment and putting downward pressure on export-related names.
Shuji Hosoi, senior strategist at Daiwa Securities Co., said concerns remained about future U.S. trade policy. U.S. President-elect Donald Trump said Monday he will follow through on his plan to withdraw the United States from the Trans-Pacific Partnership trade pact the day he takes office.
"Trump's announcement is one reason why investors cannot become more bullish," Hosoi said.
On the First Section, advancing issues outnumbered declining ones 1,210 to 650, while 127 ended the day unchanged.
Taiyo Nippon Sanso rose 11 yen, or 0.9 percent, to 1,178 yen after the Nikkei business daily reported that the maker of industrial gas will acquire an Australian industrial gas company.
Nissan fell 14.50 yen, or 1.4 percent, to 1,025.00 yen on reports that the carmaker is set to sell auto parts subsidiary Calsonic Kansei Corp. to U.S. investment fund KKR & Co.
Calsonic Kansei gained 128 yen, or 9.7 percent, to 1,450 yen.
Strong oil prices lifted resource-related names.
Japan Petroleum Exploration climbed 59 yen, or 2.5 percent, to 2,457 yen while Showa Shell Sekiyu gained 13 yen, or 1.3 percent, to 1,037 yen.
Among export-related shares, Toyota Motor shed 72 yen, or 1.1 percent, to 6,287 yen and Honda Motor declined 32 yen, or 1.0 percent, to 3,154 yen.
Trading volume on the main section fell to 1,960.90 million shares from Monday's 2,070.74 million shares.
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