Japan’s Topix Rises as Shippers, Utilities Lead Gains Japanese stocks rose, with the Topix (TPX) index poised to halt a four-day losing streak, as shipping lines and steel producers led gains among the gauge’s 33 industry groups and the yen weakened. Kawasaki Kisen Kaisha Ltd. (9107), Japan’s No. 3 shipping line, advanced 7.3 percent to lead the sector higher. Sumitomo Mitsui Financial Group Inc., Japan’s second-biggest lender, rose 1.8 percent after profit beat estimates. GungHo Online Entertainment Inc. slumped 14 percent on the JASDAQ market after the Internet-game developer reported results yesterday. The Topix increased 0.8 percent to 1,137.44 as of 9:28 a.m. in Tokyo, with about two shares rising for each that fell. The Nikkei 225 Stock Average added 0.7 percent to 13,750.07. The Topix has climbed 31 percent this year through yesterday amid optimism Prime Minister Shinzo Abe will push through reforms while the Bank of Japan continues record stimulus to beat deflation. The gauge traded at 1.21 times book value yesterday, compared with 2.48 for the S&P 500 and 1.70 for the Stoxx Europe 600 Index. About 150 companies on the Topix are scheduled to announce results today amid the busiest week of earnings season. Of the 50 companies on the gauge that have posted quarterly results and for which Bloomberg has estimates, 62 percent beat projections. Futures on the Standard and Poor’s 500 Index rose 0.1 percent today. The measure dropped 0.4 percent in New York yesterday, after pending home sales dropped 0.4 percent in June, according to the National Association of Realtors. The Fed has said economic data will determine the timing and pace of any reduction in its asset purchases. The central bank will probably maintain its benchmark interest rate at 0.25 percent after concluding its two-day policy meeting on July 31, economists predicted. The central bank will begin to reduce bond-buying in September, according to a Bloomberg survey.
Posted on: Tue, 30 Jul 2013 11:03:34 +0000