Good news from Cisco pumps the Japanese market
Tokyo, May 8 (Bloomberg) -- Japan's Nikkei 225 stock average had its biggest gain in 7 weeks, led by Kyocera Corp. and other computer-related shares, after industry leader Cisco Systems Inc. posted higher-than-expected profits.
Automakers such as Toyota Motor Corp. were the second-biggest gainers on the Topix index after a report showed U.S. productivity grew at the fastest pace in almost two decades during the first three months of 2002, boosting optimism demand in their biggest market will recover.
``Cisco's results are letting us see some light at the end of the tunnel after the industry's slump,'' said Toshio Tahara, who helps manage 180 billion yen ($1.4 billion) in Japanese equities at Sumisei Global Investment Trust Management Co. ``The production report eases concerns over a delay in a U.S. economic recovery.''
The Nikkei 225 stock average jumped 265.61, or 2.3 percent, to 11,579.65, its biggest gain since March 19. The Topix index rose 12.89, or 1.2 percent, to 1087.01, as computer-related stocks made up more than a fifth of the index's gain.
Nikkei 225 futures for June delivery gained 260 yen to 11,580 in Osaka and added 250 yen to 11,585 in Singapore. In orders placed before the market opened today, foreign investors sold 3.8 million more shares than they bought through 12 brokerages.
Cisco Effect
Computer-related stocks were the biggest contributor to the Topix's gain after Cisco, the world's largest maker of computer- networking equipment, posted profits that topped the average estimate from analysts polled by Thomson Financial/First Call. Cisco shares rose as much as 12 percent in U.S. after-hours trading.
Kyocera, which makes telecommunication and information equipments, jumped 270 yen, or 3.2 percent, to 8,820. Itochu Techno-Science Corp., a developer of computer network systems, gained 130 yen, or 2.8 percent, to 4,730.
They were also helped as the Nasdaq 100 Globex Futures Index gained 2.3 percent, signaling U.S. computer-related shares may open higher later today. |
