News Column

Japanese Market Advances On Tankan, Weaker Yen

June 30, 2014

TOKYO (dpa-AFX) - The Japanese stock market is trading notably higher on Tuesday with investors picking up stocks following the Tankan survey showing an improved outlook. A slightly weaker yen is also contributing to the upmove.

The benchmark Nikkei 225 index is up 163 points or 1.1 percent at 15,325.1.

Toho Zinc is moving up 5.6 percent. Pacific Metals, Tokuyama Corp., Marui Group, Daikin Industries, Kuraray Co., NEC Corp., NSK, Mitsubishi Electric Corp., Sumitomo Electric Industries, Fuji Electric and Mitsumi Electric Co. are rising 3 to 5 percent.

Shizuoka Bank, Sumco Corp., Amada Co., Olympus Corp., Mitsui Mining & Smelting, Bank of Yokohama, Chugai Pharmaceutical Co., Toray Industries, T&D Holdings, Isuzu Motors and Alps Electric are all advancing by over 2 percent.

Meanwhile, Maruha Nichiro Corp., Dowa Holdings, Shinsei Bank, Showa Shell Sekiyu KK, Taiyo Yuden and Nippon Suisan Kaish are trading weak, losing 0.3 to 1.3 percent.

On the economic front, the Tankan survey showed a decline in the the key diffusion index of large manufacturers in June. But the survey showed large companies are planning to boost their capital spending by 7.4 percent in the financial year through March, up sharply from a previous 0.1% rise forecast in the March survey.

In the currency market, the U.S. dollar traded in the lower 101 yen level in early deals in Tokyo. The yen is currently trading at 101.48 to the U.S. dollar, compared to Monday's close of 101.38 yen per dollar.

Among other markets in the Asia-Pacific region, Australia, New Zealand and Taiwan are marginally higher, while Shanghai, Singapore, Malaysia and South Korea are trading weak. The Hong Kong market is closed for Region Establishment Day.

On Wall Street, stocks ended roughly flat on Monday, after showing a lack of direction throughout the session, as traders seemed reluctant to make any significant moves amid continued uncertainty about the outlook for the markets ahead of the release of some crucial data later this week.

The major averages eventually ended the day on opposite sides of the unchanged line. While the Nasdaq rose 10.3 points or 0.2 percent to 4,408.2, the Dow dipped 25.2 points or 0.2 percent to 16,826.6 and the S&P 500 edged down 0.7 points or less than a tenth of a percent to 1,960.2.

Major European markets ended mixed on Monday. While the German DAX index crept up by 0.2 percent, the French CAC 40 index and the U.K.'sFTSE 100 index declined by 0.3 percent and 0.2 percent, respectively.

U.S. crude oil ended lower for a third straight session on Monday, amid easing concerns over disruption in supplies from the Middle East with Iraqi government forces beginning to make headway into territories held by Sunni rebels.

Crude oil futures for August delivery ended down $0.37 or 0.3 percent at $105.37 a barrel on the New York Mercantile Exchange.

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Source: dpa-AFX International Compact

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