Tokyo stocks rose Wednesday as investors priced in expectations for a forthcoming new share offer from Sumitomo Mitsui Financial Group (SMFG), which lifted banks, while a bullish coverage start on big insurers helped that sector to rally as well.
The stock market showed little reaction to the possibility that Japanese finance minister Hirohisa Fujii (77) may resign for health reasons. Local media reported Fujii is firmly resolved to step down on worries that he won't be able to withstand the rigors of parliamentary debates.
Traders said stocks may continue to be indifferent until more information on the situation surfaces, including the identity of Fujii's replacement if he exits.
"In the meantime, investors are likely to focus on U.S. jobs data (due out Friday)," said Yumi Nishimura, market analyst at Daiwa Securities SMBC.
The Nikkei 225 Stock Average rose 49.62 points, or 0.5%, to 10,731.45, its third straight winning performance to start the new year, and eighth in the last 10 sessions. The Topix index of all the Tokyo Stock Exchange First Section issues rose 11.56 points, or 1.3%, to 931.13, with 29 of 33 subindexes closing in positive territory.
Trading volume topped 2.2 billion shares, its best tally since mid-December.
Sentiment (for equities) is good so far, but the U.S. jobs data may trigger profit-taking, Nishimura said.
SMFG rose 5.5% to Y2,800 on very active trading as investors reason that all the bad news--especially for share dilution--is now out following reports that the firm plans to raise some Y800 billion in new equity capital.
"The timing and amount of the capital increase are within market expectations," said Credit Suisse analyst Shinichi Ina, indicating limited further downside risk for the stock.
The insurance sector was stronger after Bank of America Merrill Lynch began its coverage at "Buy" for Mitsui Sumitomo Insurance, Aioi Insurance and Nissay Dowa General Insurance, respectively. The brokerage projects better than average premium income in the next fiscal year for Mitsui Sumitomo, which gained 2.0% to Y2,476. Aioi added 2.6% to Y469 and Nissay rose 2.4% to Y468. The trio are set to merge later this year.
Nintendo jumped 6.8% to Y24,500 on heavy volume after saying U.S. sales of its popular Wii game console rebounded in December and is likely to have exceed 3 million units.
Toyota Motor gained 2.5% to Y3,900 after it said it sold the most cars and light trucks to U.S. consumers last year of any manufacturer for the first time, beating General Motors, which relies more heavily on fleet sales.
Meanwhile, Casio lost 2.9% to Y727 after Barclays Capital cut its stock rating to Underweight from Equal-weight, citing risks such as a possible fall in dividends.
March Nikkei 225 futures closed up 20 points, or 0.2%, at 10,710 on the Osaka Securities Exchange.
The stock market showed little reaction to the possibility that Japanese finance minister Hirohisa Fujii (77) may resign for health reasons. Local media reported Fujii is firmly resolved to step down on worries that he won't be able to withstand the rigors of parliamentary debates.
Traders said stocks may continue to be indifferent until more information on the situation surfaces, including the identity of Fujii's replacement if he exits.
"In the meantime, investors are likely to focus on U.S. jobs data (due out Friday)," said Yumi Nishimura, market analyst at Daiwa Securities SMBC.
The Nikkei 225 Stock Average rose 49.62 points, or 0.5%, to 10,731.45, its third straight winning performance to start the new year, and eighth in the last 10 sessions. The Topix index of all the Tokyo Stock Exchange First Section issues rose 11.56 points, or 1.3%, to 931.13, with 29 of 33 subindexes closing in positive territory.
Trading volume topped 2.2 billion shares, its best tally since mid-December.
Sentiment (for equities) is good so far, but the U.S. jobs data may trigger profit-taking, Nishimura said.
SMFG rose 5.5% to Y2,800 on very active trading as investors reason that all the bad news--especially for share dilution--is now out following reports that the firm plans to raise some Y800 billion in new equity capital.
"The timing and amount of the capital increase are within market expectations," said Credit Suisse analyst Shinichi Ina, indicating limited further downside risk for the stock.
The insurance sector was stronger after Bank of America Merrill Lynch began its coverage at "Buy" for Mitsui Sumitomo Insurance, Aioi Insurance and Nissay Dowa General Insurance, respectively. The brokerage projects better than average premium income in the next fiscal year for Mitsui Sumitomo, which gained 2.0% to Y2,476. Aioi added 2.6% to Y469 and Nissay rose 2.4% to Y468. The trio are set to merge later this year.
Nintendo jumped 6.8% to Y24,500 on heavy volume after saying U.S. sales of its popular Wii game console rebounded in December and is likely to have exceed 3 million units.
Toyota Motor gained 2.5% to Y3,900 after it said it sold the most cars and light trucks to U.S. consumers last year of any manufacturer for the first time, beating General Motors, which relies more heavily on fleet sales.
Meanwhile, Casio lost 2.9% to Y727 after Barclays Capital cut its stock rating to Underweight from Equal-weight, citing risks such as a possible fall in dividends.
March Nikkei 225 futures closed up 20 points, or 0.2%, at 10,710 on the Osaka Securities Exchange.
No comments:
Post a Comment