RTTN: Wall Street Gains, Intel Results Lift Japanese Market
(RTTNews) - The Japanese market ended the trading session Wednesday sharply higher, lifted by better than expected results from chipmaker Intel, which released results after the markets closed on Wall Street, and positive closing in major US markets on earnings optimism following results from Alcoa (AA) and CSX Corp. (CSX). Technology shares led the gains followed by shipping and commodity shares following rise in commodity prices in the international market. Optimism that the global economic recovery might be sustained still eludes the market as market participants were cautious, and stayed away from the market.
The benchmark Nikkei 225 Index rose 258.01 points, or 2.7%, to 9795, while the broader Topix index of all First Section issues gained 16.34 points, or 1.9%, to 871.
Light sweet crude oil futures for August delivery ended at $77.08 a barrel in electronic trading, down $0.07 per barrel from previous close at $77.15 a barrel in New York on Tuesday.
Almost all the stocks across the 33 sectors ended in positive territory.
Technology sectors led the pack of gainers following positive results and forecast from bellwether Intel in the previous session on Wall Street.
Advantest Corp. surged up 5.67%, and Tokyo Electron climbed 4.07%. Among other machinery stocks, Fanuc Ltd gained 4.23%, Kyocera Corp. climbed 4.42%, and TDK Corp. surged up 5.13%.
Exporters also joined the rally with the local currency, Japanese yen, weakening against the euro and the US dollar. Canon Inc. gained 3.47%, Sony Corp. advanced 1.81%, Sharp Corp. rose 2.23%, and Panasonic Corp. was up 1.70%.
Shipping stocks ended sharply higher on optimism about higher demand, and weaker local currency. Mitsui OSK Lines surged up 5.15%, Kawasaki Kisen Kaisha climbed 4.12% and Nippon Yusen rose 3.02%
Mizuho Financial Group, which had priced new price offer at Y130 on Tuesday, climbed 3.70% amid huge volumes which accounted for nearly 40% of the total volume traded in the market. Among other major banks, Sumitomo Mitsui Financial advanced 0.70%, and Mitsubishi UFJ Financial added 0.71%. However, Resona Holdings bucked the trend and ended in negative territory with a loss of 1.15%.
Automotive stocks ended in positive territory on optimism about sustaining global economic recovery and weaker yen. Toyota Motor Corp. climbed 4.00%, Honda Motor rose 3.87%, Suzuki Motor Corp. advanced 1.84%, Nissan Motor Co. surged up 3.88%, Mitsubishi Motors added 1.74% and Mazda Motor increased 2.84%.
