Japan Stocks Swing After 12-Day Rally on Yen, U.S. Rate Outlook

Japanese stocks fluctuated as stronger-than-expected U.S. factory data boosted expectations that the U.S. will raise interest rates, while the yen fell to fresh 12-year lows against the dollar.

TDK Corp., which gets more than 90 percent of its electronic component sales abroad, added 1.5 percent, as the weaker yen boosted exporters. Power companies led gains after JPMorgan Chase & Co. raised its rating on several companies in the sector, including Chubu Electric Power Co., which surged 4.9 percent. NTT Docomo Inc. jumped 3.5 percent after the Nikkei newspaper reported the mobile carrier plans to boost shareholder returns through buybacks and cost reductions. Japan Tobacco Inc. fell 1.7 percent after its Canadian subsidiary was ordered to pay C$ 2 billion to plaintiffs of two class action lawsuits.

The Topix index was little changed at 1,678.81 at the break in Tokyo, having swung between a gain of 0.3 percent and a loss of 0.1 percent. The Nikkei 225 Stock Average added 0.1 percent to 20,584.75. Both measures have rallied for 12 days. The yen traded at 124.75 per dollar after weakening 0.5 percent yesterday as U.S. manufacturing data indicated renewed strength in the world’s largest economy.

Source : Bloomberg

MARKET

Topix Index Caps 12-Day Rally on Strong Japanese Economic Data

Japan Topix index rose for a 12th day as stronger-than-expected local economic data outweighed concern over an economic slowdown in the U.S.

Toshiba Corp. added 3.3 percent after the Nikkei newspaper reported the electronics group may move to restore its dividend. Mizuho Financial Group Inc. climbed 1.8 percent on reports it may boost its cash holdings. Teijin Ltd. jumped 3.9 percent after UBS AG upgraded its rating on the fiber maker. Takata Corp., embroiled in an auto air-bag scandal, lost 2.8 percent as shares continued moving lower following a brief respite last week.

The Topix rose 0.3 percent to 1,678.56 at the close in Tokyo, reversing losses of as much as 0.7 percent, to post its longest winning streak since August 2009. The Nikkei 225 Stock Average was little changed at 20,569.87. The yen traded at 124.15 per dollar after losing 4 percent in May, its biggest monthly decline since November. Strong data on Japanese capital spending and manufacturing outweighed a report on Friday that showed the U.S. economy shrank for the first time in a year.

Source : Bloomberg

MARKET