Topix Rises as Japanese Airlines Gain on Cheaper Fuel Outlook

Japan’s Topix index rose for the first time in three days as airlines led gains on the outlook for cheaper fuel as oil traded near an 11-year low. Toshiba Corp. tumbled for a second day.

The Topix index gained 0.2 percent to 1,533.60 at the close in Tokyo, swinging from an earlier 0.3 percent drop. The Nikkei 225 Stock Average fell 0.2 percent to 18,886.70. Brent crude halted a slide near the lowest price since mid-2004, while metal prices recovered after China signaled it may boost stimulus to support growth. Japanese markets will be closed Wednesday for a national holiday.

Toshiba fell 12 percent, bringing its two-day decline to 21 percent, after the electronics maker forecast a record net loss of 550 billion yen ($ 4.5 billion) for the current fiscal year as it seeks to cope with the fallout from its on-going accounting scandal. It posted the biggest decline on the Nikkei 225.

Electronic parts maker Mitsumi Electric Co. surged 9.9 percent, rising for a second day, after announcing a plan to merge with Minebea Co. in 2017. Shares of Minebea fell 4.1 percent.

Pharmaceutical companies gained. Eisai Co. added 1 percent after Goldman Sachs Group Inc. raised its rating. PeptiDream Inc. jumped 7 percent after announcing a research collaboration with Genentech Inc.

McDonald’s Holdings Co. Japan Ltd. sank 7.9 percent after the Nikkei reported its U.S. parent is considering selling as much as a third of its stake in the Japan unit.

Airlines and transport stocks posted the biggest gains among the 33 industry groups on the Topix index. Japan Airlines Ltd. rose 2.7 percent and West Japan Railway Co. jumped 3.9 percent.

Source: Bloomberg

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U.S. Stocks Rise as Energy Advances, Airlines Boost Industrials

U.S. stocks rose to halt a three-day slide, as beaten-down energy shares climbed for a second session from their lowest level since September and airlines led transportation companies off a three-month low.

Weakness in energy and industrial shares has helped restrain equities from any meaningful advance since the Standard & Poor’s 500 Index reached a more than three-month high in early November. Airlines boosted industrials today, while Chevron Corp. added 1.9 percent to bolster energy after cutting its 2016 spending plans.

The S&P 500 rose 0.2 percent to 2,052.26 at 4 p.m. in New York, near its average price during the past 50 days after earlier rising as much as 1 percent. The gauge remains on track for its first weekly decline in four.

With the Federal Reserve’s rate-setting meeting less than a week away, the S&P 500’s performance this December is proving an exception to the historical trend for the month — typically the strongest for global equities. An early rally fizzled yesterday as Apple Inc. paced technology-share declines, while renewed worries about the pace of global growth erased all the benchmark index’s 2015 gains.

Fed Chair Janet Yellen has recently signaled the economy is ready for higher borrowing costs. Still, investors are caught between optimism about U.S. growth and concern that a slowdown in China and the consequent tumble in commodities will damp global growth prospects. Oil prices hovered near six-year lows Thursday after OPEC said crude output rose to the highest in more than three years in November.

 

Source : Bloomberg

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