Japanese stocks rose, with the Nikkei 225 Stock Average (NKY) gaining for the first time in four days, as stronger-than-forecast U.S. consumer sentiment and spending bolstered optimism on the global economic recovery.
Honda Motor Co. (7267), a carmaker that gets almost half of its revenue in North America, advanced 2.9 percent. Fanuc Corp. (6954), a producer of robotics for Chinese mainland factories, gained 2.3 percent. Mitsubishi Corp. (8058), Japan’s biggest commodities trader by revenue, climbed 1.9 percent after oil and metals prices rose.
“U.S. economic data has been solid and that’s helping to buoy confidence in the global economy,” said Toshiyuki Kanayama, a Tokyo-based market analyst at Monex Group Inc., an online brokerage. “You’ll probably see investors buy Chinese-related shares today. There’s increasing concern that China’s economy is slowing, but the Purchasing Mangers’ Index looked positive.”
The Nikkei 225 Stock Average rose 0.9 percent to 10,170.14 as of 9:36 a.m. in Tokyo, with volume 29 percent higher than the 100-day average. The broader Topix (TPX) Index gained 0.8 percent to 861.05, with about four shares advancing for every three that fell.
U.S. Consumer Sentiment
Futures on the Standard & Poor’s 500 Index (SPXL1) rose 0.4 percent today. The gauge gained 0.4 percent in New York on March 30 after a report showed U.S. consumer sentiment climbed to the highest since February 2011. Americans increased spending by the most in seven months, according to a separate report from the U.S. Commerce Department.
The yen weakened against the dollar and the euro after stronger-than-expected Chinese manufacturing data boosted confidence in the global economy, reducing demand for haven assets. The Purchasing Managers’ Index (CPMINDX) rose to a one-year high in March, China’s National Bureau of Statistics said yesterday.
The yen depreciated to as low as 83.18 against the dollar today in Tokyo, compared with 81.93 at the close of stock trading on March 30. Japan’s currency weakened to 111.06 against the euro from 109.38. A weaker yen boosts overseas income at Japanese companies when repatriated.
Stocks rose even after sentiment among Japan’s largest manufacturers failed to improve in March. The quarterly Tankan index (JNTSMFG) was unchanged from minus 4 in December, the Bank of Japan said today in Tokyo. Economists surveyed by Bloomberg News expected a reading of minus 1. A negative number means pessimists outnumber optimists.
The Topix (TPX) has risen 9.5 percent since Feb. 14, when the Bank of Japan increasing its government-bond purchases, weakening the yen. The gain has boosted the value of stocks on the Topix to 1.06 times book value, up from 0.88 in December, according to Bloomberg data. A number below one means companies can be bought for less than value of their assets.
Crude for May delivery climbed 0.2 percent to settle at $103.02 a barrel in New York on March 30, capping a second quarterly gain. Oil prices increased 4.2 percent for the period after a gain of 25 percent in fourth quarter.
The London Metal Exchange Index of prices for six industrial commodities including copper and aluminum gained 1 percent on March 30, the first advance in four days.
To contact the reporters on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net; Masaaki Iwamoto in Tokyo at miwamoto4@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
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