5:00 AM New York, 7:00 PM Tokyo – Stocks in Japan and Asia traded higher on improved sentiment and sustained economic recovery in the region. Factory production in Japan increased for the ninth month in a row and the Japan estimated economic expansion in the next fiscal year of 1.4%. The steelmaker JFE Holdings said Asian demand is ahead of capacity.
The benchmark stock index rose 1.4% in Japan after the Cabinet Office forecasted the economy is likely to expand 1.4% in the year starting April 2010.
Investors further cheered a government report showing industrial production advanced 2.6% in November.
In Tokyo trading Nikkei 225 Stock Average rose 1.4% or 139.52 to 10,634.43, and the broader Topix Index advanced 1.1% to 919.56.
In the first section of the Tokyo Stock Exchange 6.8 billion shares worth 420 billion yen were traded and in the second section 227 million shares valued at 1.6 billion yen changed hands.
Of the Nikkei 225 index stocks, 194 rose, 23 decreased, and 8 were unchanged. Konami Corp. led gainers in the index shares with a rise of 5.8% followed by Nippon Mining gaining 5.4%.
Japan’s Industrial Production Rises 2.6% in November
Japan’s Ministry of Industry Trade and Economy reported today the country’s industrial production rose 2.6% to 88.3 in November from the previous month, rising for the ninth straight month, but fell 3.9% from the same period a year ago.
Industries that spurred growth were transport equipment, general machinery and others in that order.
Commodities that contributed to the increase were small and large passenger cars, drive and transmission and control parts.
The METI noted in the Survey of Production Forecast in Manufacturing, production is projected to increase 3.4% in December and to rise 1.3% in January.
Industries that mainly contributed to the increase in December are iron and steel, electronic parts and devices and electrical machinery, in that order.
In addition, industries that mainly contributed to the increase in January were general machinery, transport equipment, information and communication electronics equipment, correspondingly.
Japan’s Commercial Sales Fall 14.6% in Nov
Separately, the METI said in the preliminary report of current survey of commerce that commercial sales dropped 14.6% to 40.7 trillion yen.
Wholesale sales fell 18.7% to 29.6 trillion yen, while retail sales declined 1% to 11 trillion yen.
Sales for large-scale retail stores decreased 9.6% to 1.6 trillion yen.
Nikkei Movers
Pioneer Corporation led the decliners in the Nikkei 225 Stock Average with a loss of 3.1% followed by losses in Japan Tobacco Inc of 2.1%, in Showa Shell Sekiyu K.K of 1.9%, in Showa Denko K.K 1.6% and in Daiwa Securities Group Inc 1.4%.
Konami Corp led gainers in the Nikkei 225 Stock Average with a rise of 5.8% followed by gains in Nippon Mining Holdings Inc 5.4%, in CSK Holdings Corporation of 5.0% and in Nippon Oil Corporation of 4.8%.
