Japan Shares Hit Two-Week High
Sun Nov 24,10:26 PM ET
By Bill Tarrant
URL:http://story.news.yahoo.com/news?tmpl=story2&cid=568&ncid=749&e=1&u=/nm/20021125/bs_nm/markets_asia_dc
SINGAPORE (Reuters) - Japanese shares rose to a two-week high on Monday, lifted by a weakening yen, and most other Asian stock markets posted gains on the back of a brighter outlook in the United States, the world's largest economy.
The dollar was perched at a three-week high against the yen and a 2-1/2-week peak against the euro, emboldened by encouraging recent U.S. economic numbers and a rise on Wall Street.
Tokyo's benchmark Nikkei was up 1.59 percent at 8,911.92 by midday as investors waded back into a market hovering not far above 19-year-lows. The broader TOPIX index gained 1.48 percent to 871.77.
"Investors are still not very confident, but the downside risk has significantly receded," said Atsushi Tajima, general manager of equities trading at Mitsubishi Securities.
"Individuals were sellers through last week and their cash positions are thus high. Some of that money is coming back."
Mobile phone operator NTT DoCoMo rose three percent, while Internet services group Softbank Corp soared 17.73 percent.
Even Japan's battered banks gained after investors initially dumped those stocks ahead of interim earnings reports later in the day. An announcement on how the government will implement a plan to speed up disposal of about $423 billion in sour loans, expected at the end of the week, was influencing bank shares.
Electronics giant Sony Corp (news - web sites) rose 1.5 percent to 5,400 yen, with export-oriented firms helped by the fall in the yen.
BUOYANT DOLLAR
The dollar traded at 122.65/70 yen near an earlier three-week high, after 122.81 yen in late New York on Friday.
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The U.S. currency was equally buoyant against the euro, with the single currency at $0.9938/44 from 0.9970 on Friday.
Traders said the greenback's rebound may persist in the holiday-shortened U.S. trading week. Trade is expected to wind down, heading into Thursday's Thanksgiving Day holiday.
Traders were looking to U.S. data later in the week after recent figures beat market expectations. Last week's numbers revealed renewed growth in mid-Atlantic manufacturing and a drop in jobless claims to the lowest level since July.
This week, figures on consumer confidence and durable goods orders are expected to stoke optimism on the U.S. economy.
"If U.S. data turn out better than expected, we could see more support for the dollar, while disappointing data could simply be brushed off as having been factored in," a Japanese bank trader said.
South Korean stocks were up 1.6 percent, led by a 9.3 percent jump in Hyundai Heavy Industries, after investors cheered the withdrawal of its high-profile chairman from the country's presidential race.
But Taiwan stocks were down 0.5 percent and Hong Kong shed 0.1 percent. Sydney stocks also lost a little altitude, though Qantas gained after the airline said it would buy a stake in Air New Zealand. |
