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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Japan Stocks Swing as Investors Weigh Stronger Yuan, Cheaper Oil

Japanese stocks swung between gains and losses as oil’s tumble to a six-year low weighed on energy shares, while China’s raising of its currency’s daily reference rate eased concern that sharp devaluations would continue.

Nexon Co. surged by a record 20 percent after profit tripled at the gamemaker. Electronic retailer Laox Co. jumped 7.3 percent after doubling its profit outlook. Commodity-related stocks led declines, with oil explorer Inpex Corp. sinking 1.5 percent. Fuji Electric Co. lost 1.3 percent after JPMorgan Chase & Co. lowered its rating on the maker of vending machines.

The Topix index rose less than 0.1 percent to 1,668.12 at the break in Tokyo, on course for a weekly loss of 0.7 percent. The gauge reversed losses of as much as 0.3 percent after China raised the yuan reference rate, the first such move since it shocked global investors on Tuesday with the first devaluation. The Nikkei 225 Stock Average fell 0.2 percent to 20,557.21. West Texas Intermediate crude oil dropped below $ 42 per barrel in New York on Thursday for the first time since 2009.

Source: Bloomberg

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