Nikkei Snaps 9-day Losses; Ends Higher On Wall Street Cues

 @ibtimes on July 14 2009 5:29 AM

RTTNews - The stock market in Japan snapped its 9-day losses and ended higher on Tuesday, followng strong closing on Wall Street led by financials on expectations of better earnings results. The weakening of the local currency against the greenback and modest recovery in commodity prices also lifted market sentiment.

In the U.S., positive comments on the performance of the financial sector by Meredith Whitney, who raised the rating for Goldman Sachs from Neutral to Buy and also saw value for investors in Bank of America, helped stocks stage a smart rally on Monday, led by financial stocks.

The Dow closed up by 185.16 points or 2.3% at 8,332, the Nasdaq moved up by 37.18 points or 2.1% to 1,793 and the S&P 500 rose by 21.92 points or 2.5% to 901.

The Nikkei 225 Average opened sharply higher at 9,173 compared to its previous close of 9,050 and continued to surge further on positive cues from Wall Street. Modest rise in commodity prices and weaker local currency also lifted market sentiment. The index ended in positive territory with a gain of 211.48 points, or 2.34% at 9,262. The broader Topix Index of all first section issues gained 16.15 points, or 1.89%, to close at 869.

Light sweet crude oil for August delivery ended the Asian trading session at $60.21, up 52 cents, after having ended the previous session in after ending Monday's session in New York at $59.69, down 20 cents amid volatile trading on demand concerns.

Financial stocks advanced on expectations of better earnings. Mitsubishi UFJ Financial gained 3.38%, Mizuho Financial advanced 2.59%, Resona Holdings edged up 0.55% and Sumitomo Mitsui soared 5.41%. Securities firms also ended higher. Nomura Holdings surged 6.39% and Mizuho Securities soared 7.85%.

Metal stocks rebounded on modest rise in commodity prices. Mitsui Mining rose 7.80%, Nippon Light Metal Co gained 6.67% and Sumitomo Metal Mining advanced 4.18%

Komatsu Ltd., a machinery maker that derives almost a quarter of its revenue from the Americas, gained 6.6% following reports that the company might report operating profit for the second quarter.

Automobile stocks also ended higher. Nissan Motor, the third largest automaker in the country, rose 7.3% following reports that the company is planning to increase production to meet the rising demand in China. Isuzu Motors soared 9.6% and Toyota Motor gained 3.55%

Asahi Glass advanced 5.8% , Sony Corp gained 5.5% and Canon Inc. advanced 3.4%, on weaker local currency.

Shipping stocks reversed the declining trend and ended higher Kawasaki Kisen gained 2.70%, Mitsui OSK Lines rose 5.05% and Nippon Yusen advanced 2.39%

Oil stocks also ended in positive territory. Impex gained 2.52%, Nippon Oil rose 3.32% and Showa Shell edged up 0.63%.

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