Nikkei up by automakers drop and yen
Stock Report March 9th, 2010
Japanese stocks rose triggered speculation of foreign income will increase as the yen weakened to the lowest level against the dollar since August, following the comments of Finance Minister Naoto Kan.
Toyota Motor Corp.., Propdusen the world’s largest automaker, had gains of 2% after yesterday Kan said in his first day in office that he would rather see the yen weakened a little deeper. Sony Corp. rose 2%, Aeon Co. climbed 6.5% after a net loss decreased.
The Nikkei 225 Stock Average rose 1.1% to 10,795.12 at 9:46 pm in Tokyo, leading to the closing position of the highest since October 2008. Topix index climbed 0.7% to as low as 938.76, with the number of shares gained twice as much than the weaker.
Topix index climbed 5.6% last year, the smallest increase in the number of index references to the 40 largest stock markets in the world, sparked fears the government will not help economic growth and strengthening of the yen would hit profits. A number of stocks in the index traded at an average level of 37 times estimated earnings, compared with 15 times the Standard & Poor’s 500 in the U.S. and 13 times in the Dow Jones Stoxx 600 in Europe.
The yen weakened to as low as 93.77 against the dollar today from 92.20 at the closing stock trading in Tokyo yesterday. The weakening of the yen raised the value of overseas sales of Japanese companies when converted into the country’s currency.
The currency jumped to the highest in 14 years in November and 93.59 on the average level in 2009, the highest level within 1 year from free trade that currency began in 1971.
Toyota climbed 2% to as low as 3925 yen and is the largest contributor to the strengthening Topix. Sony rose 2% to 2797 yen positions, and Sharp Corp. climbed 1.5% to 1193 yen.
Aeon jumped 6.5% to 848 yen, its sharpest gain in the Nikkei 225, after losses in 9-month net shrank 66% compared to a year ago.
Elpida Memory Inc. gained 3.4% to 1735 yen positions after the Nikkei Home News reported that the company likely to get the first operating profit in 3 years. NEC Electronics Corp. rose 4% to as low as 777 yen, Tokyo Electron Ltd. 1.7% experienced a gain of 5980 yen
