Toyota Motor Corp., Asia’s biggest carmaker, advanced 3 percent. Kansai Electric Power Co. jumped 6.6 percent after a panel of seismologists and geologists said an earthquake fault-line under the utility’s Ohi plant may not be active. Kawasaki Kisen Kaisha Ltd. climbed 2.7 percent on a report the shipper ordered four new car carriers.
The Topix increased 2.3 percent to 1,143.85 as of 10:20 a.m. in Tokyo, headed for its biggest gain since Aug. 2, as all 33 industry groups rose. The measure lost 2.3 percent last month to cap the longest monthly losing streak since 2008. The Nikkei 225 added 2.3 percent to 13,886.46, with just two companies falling. Japan’s currency weakened to 99.50 against the dollar, its lowest since Aug. 2.
“Investors’ risk aversion has started to recede,” said Hideyuki Ishiguro, senior strategist at Okasan Securities Co. in Tokyo. “Exporters generally estimate the currency at 93.5 yen to the dollar, so the yen’s level now raises optimism that we’ll see upwards earnings revisions in the next reporting season.”
Gauges from the U.K. to Spain showed European output is picking up. The Institute for Supply Management is expected to say U.S. factory activity expanded for a third month. A weekend report showed manufacturing in China grew in August, while nation’s non-manufacturing purchasing managers’ index released today fell to 53.9 from 54.1 in July while remaining above the 50 level that indicates expansion.
Yen Weakens
The yen slipped 0.2 percent to 99.53 per dollar today, after sliding 1.2 percent yesterday, as positive economic reports damped demand for haven assets. The currency lost 0.1 percent to 131.21 per euro today, after declining 1 percent yesterday.“Investors are now seeing global risk as controllable and relief is spreading,” said Akio Yoshino, chief economist in Tokyo at Amundi Japan Ltd., which oversees about 3.3 trillion yen ($33 billion). “After Japanese stocks fell in August, we’re also seeing some technical rebound. The yen may weaken to 105 per dollar by year-end if we see further growth strategies from Abenomics.”
Mitsubishi Motors Corp. surged as much as 9.6 percent today, as the yen weakened and after the 14-day relative strength index on the stock yesterday fell to 25. A reading below 30 indicates to some traders that the shares have fallen too far.
The government will outline its response to radioactive-water leaks at Tokyo Electric Power Co.’s wrecked Fukushima nuclear plant today. Japan may spend more than 40 billion yen on measures to combat the spills at the plant, the Nikkei reported today, citing unnamed officials.
The Topix traded at 1.17 times book value yesterday, compared with 2.40 for the S&P 500 on Aug. 30 and 1.71 for the Stoxx Europe 600 Index yesterday. The Japanese gauge’s 30-day historic volatility was at 26.84 yesterday, compared with its five-year median of 19.42.
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 10:01 AM
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