Japan’s Topix Fluctuates as Glassmakers improves, Shippers Move Lower
March 13, 2014 5:44 am
Japan’s Topix Index moved back and forth between increases and declines, after declining the most in five weeks yesterday, as glassmakers rallied while shippers pulled back.
NGK Spark Plug Co. soared 2.7 percent, leading advances by a Topix gauge tracking glass and ceramic-product makers. Teijin Ltd. leaped 2.3 percent on a report the carbon-fiber maker will supply materials and parts for Airbus Group NV’s new aircraft. Mitsui OSK Lines Ltd. pulled back 1.2 percent after the Baltic Dry Index, a measure of commodity shipping rates, backslide the most in eight weeks yesterday.
The Topix soared 0.3 percent to 1,209.96 at the break in Tokyo after declining as much as 0.2 percent. About two shares advance for each that dropped. The measure shrank 2.1 percent yesterday, the biggest retreat since February 4. The Nikkei 225 Stock Average inched up 0.5 percent today to 14,899.83.
“Domestically, there are a lot of positives, but the overseas environment is bad, so we’re not in a situation where we can go chasing highs,” said Akio Yoshino, chief economist in Tokyo at Amundi Japan Ltd., which oversees the equivalent of $32.1 billion. “The problems in China are serious and tensions continue in Ukraine.”
China is estimated to report slower development in industrial output today after a surprising decline in exports over the weekend and an unsatisfying credit growth pushed a rout in global equities and industrial metals. Investor scrutiny of the nation’s onshore bond market is intensifying after Shanghai Chaori Solar Energy Science & Technology Co. last week became the first firm to default. The failure is firing up assumptions that more firms may miss debt deadlines.
Ukraine Dispute
U.S. President Barack Obama called Russia’s incursion into Crimea a violation of international law and told Ukrainian Prime Minister Arseniy Yatsenyuk that the U.S. supports Ukraine to guard down its sovereignty and territory.
Russian government officials and businessmen are readying for sanctions looking like those applied to Iran after what they see as the unavoidable annexation of Ukraine’s Crimea region.
Japan’s core machine orders for January, a sign of future capital spending, skyrocketed 13.4 percent from the previous month, the cabinet office declared today. Economists surveyed by Bloomberg had expected a 7.1 percent increase.
Labor unions said they hit their largest increases in years as Prime Minister Shinzo Abe calls for firms to make wage hikes to aid put the world’s third-biggest economy on a path to sustainable development.
Salary Hikes
Based on transactions across 43 union groups, firms settled to make wage hikes by an average of 1,950 yen ($19) a month in the coming year, the Japanese Trade Union Confederation, known as Rengo, declared yesterday in Tokyo. The union group, the nation’s largest, said the increment was important enough to rank as the largest increases won since at least the turn of the century.
Japan Airlines Co. bolstered 1.4 percent to 5,150 yen. Deutsche Bank AG reiterated its purchase rating and said the carrier’s balance sheet is strong enough to support its high return-on-equity trend. Valuations are also enticing given its ROE, analysts led by Joe Liew wrote in a report dated yesterday.
The Topix Marine Transportation Index depreciated 1.3 percent, the most among the 33 industry groups. Mitsui OSK shrank 1.2 percent to 406 yen. The Baltic Dry Index relinquished 8 percent yesterday for its largest decrease since January 10.
The Topix pulled back 7.3 percent this year through yesterday after increasing 51 percent last year. The gauge exchanged at 1.18 times book value yesterday, compared with 2.61 for the Standard & Poor’s 500 Index and 1.83 for the Stoxx Europe 600 Index yesterday. Volume on the Topix was 31 percent lesser than the 30-day intraday average today.
“We’re lacking new catalysts at the moment, so we’re in wait-and-see mode,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. “Shares are undervalued and will react to falling a lot yesterday.”
The material has been provided by InstaForex Company – www.instaforex.com
Japan’s Topix Index moved back and forth between increases and declines, after declining the most in five weeks yesterday, as glassmakers rallied while shippers pulled back.
NGK Spark Plug Co. soared 2.7 percent, leading advances by a Topix gauge tracking glass and ceramic-product makers. Teijin Ltd. leaped 2.3 percent on a report the carbon-fiber maker will supply materials and parts for Airbus Group NV’s new aircraft. Mitsui OSK Lines Ltd. pulled back 1.2 percent after the Baltic Dry Index, a measure of commodity shipping rates, backslide the most in eight weeks yesterday.
The Topix soared 0.3 percent to 1,209.96 at the break in Tokyo after declining as much as 0.2 percent. About two shares advance for each that dropped. The measure shrank 2.1 percent yesterday, the biggest retreat since February 4. The Nikkei 225 Stock Average inched up 0.5 percent today to 14,899.83.
“Domestically, there are a lot of positives, but the overseas environment is bad, so we’re not in a situation where we can go chasing highs,” said Akio Yoshino, chief economist in Tokyo at Amundi Japan Ltd., which oversees the equivalent of $32.1 billion. “The problems in China are serious and tensions continue in Ukraine.”
China is estimated to report slower development in industrial output today after a surprising decline in exports over the weekend and an unsatisfying credit growth pushed a rout in global equities and industrial metals. Investor scrutiny of the nation’s onshore bond market is intensifying after Shanghai Chaori Solar Energy Science & Technology Co. last week became the first firm to default. The failure is firing up assumptions that more firms may miss debt deadlines.
Ukraine Dispute
U.S. President Barack Obama called Russia’s incursion into Crimea a violation of international law and told Ukrainian Prime Minister Arseniy Yatsenyuk that the U.S. supports Ukraine to guard down its sovereignty and territory.
Russian government officials and businessmen are readying for sanctions looking like those applied to Iran after what they see as the unavoidable annexation of Ukraine’s Crimea region.
Japan’s core machine orders for January, a sign of future capital spending, skyrocketed 13.4 percent from the previous month, the cabinet office declared today. Economists surveyed by Bloomberg had expected a 7.1 percent increase.
Labor unions said they hit their largest increases in years as Prime Minister Shinzo Abe calls for firms to make wage hikes to aid put the world’s third-biggest economy on a path to sustainable development.
Salary Hikes
Based on transactions across 43 union groups, firms settled to make wage hikes by an average of 1,950 yen ($19) a month in the coming year, the Japanese Trade Union Confederation, known as Rengo, declared yesterday in Tokyo. The union group, the nation’s largest, said the increment was important enough to rank as the largest increases won since at least the turn of the century.
Japan Airlines Co. bolstered 1.4 percent to 5,150 yen. Deutsche Bank AG reiterated its purchase rating and said the carrier’s balance sheet is strong enough to support its high return-on-equity trend. Valuations are also enticing given its ROE, analysts led by Joe Liew wrote in a report dated yesterday.
The Topix Marine Transportation Index depreciated 1.3 percent, the most among the 33 industry groups. Mitsui OSK shrank 1.2 percent to 406 yen. The Baltic Dry Index relinquished 8 percent yesterday for its largest decrease since January 10.
The Topix pulled back 7.3 percent this year through yesterday after increasing 51 percent last year. The gauge exchanged at 1.18 times book value yesterday, compared with 2.61 for the Standard & Poor’s 500 Index and 1.83 for the Stoxx Europe 600 Index yesterday. Volume on the Topix was 31 percent lesser than the 30-day intraday average today.
“We’re lacking new catalysts at the moment, so we’re in wait-and-see mode,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. “Shares are undervalued and will react to falling a lot yesterday.”
The material has been provided by InstaForex Company – www.instaforex.com
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