Nikkei closes up 0.29% on global economic optimism

GMT 15:28 2014 Wednesday ,02 July

Arab Today, arab today Nikkei closes up 0.29% on global economic optimism

Nikkei stock index
Tokyo - XINHUA

The Nikkei stock index gained 0.29 percent on Wednesday tracking gains on Wall Street as investors remain confident about the course of the global economy.
The benchmark Nikkei 225 index gained 43.77 points to finish at 15,369.97, while the broader Topix index of all first-section issues added 4.70 points, or 0.37 percent, to finish at 1,280.78.
Traders said that buying got off to a good start thanks to fresh closing highs in New York overnight with the Dow climbing 0. 77 percent and the S & P 500 gaining 0.67 percent. The Nasdaq, for its part, closed up 1.14 percent at the end of trade.
Analysts here said that shares in the U.S. were also propelled upwards following robust automobile sales and China's manufacturing data, which suggests the world's second largest economy is charting a good track, supported by increasing exports.
U.S. shares closing higher, saw the dollar fetching 101.60 yen in afternoon trade in Tokyo, compared to 101.53 yen logged in New York on Tuesday afternoon.
Yutaka Miura, a senior technical analyst at Mizuho Securities, noted that momentum in the market remains robust, adding that the highly-anticipated jobs data due out from the U.S. on Friday, should help to reinforce faith in the health of the world's top economy.
From a broader perspective, Seiichiro Iwamoto, at Mizuho Asset Management Co., said, "the U.S. economy is steadily recovering, as are emerging countries, so there's relief that it doesn't look like there's an economic slowdown."
"We can expect earnings at companies that will benefit from increased capital investment to do well," Iwamoto said, referring to yesterday's Tankan survey by the Bank of Japan (BOJ) which revealed that large businesses here are more willing to shell out on new equipment.
According to the BOJ's quarterly report, large companies raised their combined investment plans for the continuing financial year ending March, to a 7.4 percent increase from a previous 0.1 percent rise forecast in its March survey, the central bank's figures showed.
The latest figure, the central bank said, is the highest since the 2007 June survey, with large manufacturers likely to increase their investments to around 13 percent higher than initial median forecasts and marking the highest such investment rate since the Tankan in June 2006.
The yen's retreat versus the U.S. dollar was a boon for exporters and some tech firms, who rely on a weaker yen in overseas markets to boost profits when repatriated. A weaker yen also increases earnings potential and becomes competitive in overseas markets.
Toyota, the world's largest automaker, accelerated 0.64 percent to finish at 6,209 yen, while Sony rose 0.93 percent to close the day 1,721 yen.
Tire maker Bridgestone jumped 3.6 percent to 3,737 yen, following Credit Suisse raising its outlook on the stock to 4,650 yen from 4,600 yen, citing an expectation for second-quarter operating profit higher than the firm's original forecast.
Japan's major shipping companies also faired well Wednesday, with second-largest Mitsui OSK Lines Ltd. rising 1.9 percent to 386 yen, while third-largest Kawasaki Kisen Kaisha Ltd. added 0.9 percent to finish at 215 yen.
Nippon Yusen, Japan's biggest shipper, leapt 2 percent to 301 yen, following the Nikkei business daily reporting that the company will join with Mitsubishi Corp. and French energy behemoth GDF Suez to sell liquified natural gas (LNG).
Trading volume on Wednesday rose to 2.29 billion shares on the Tokyo Exchange's First Section, down from Tuesday's volume of 2.39 billion shares, with advancing issues outnumbering declining ones by 939 to 703.

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