Japanese Stocks Rebound as Factory Output Surprises
Bloomberg, (31/5) -- The Topix index rebounded from yesterday’s plunge
after Japan’s industrial production rose more than expected and a report
said the country’s public pension fund may buy more stocks.
Real estate shares gained 3.2 percent today, rebounding after yesterday leading declines among industry groups. Fast Retailing Co., the most-heavily weighted company on the Nikkei 225 Stock Average, rose 3.6 percent after sliding yesterday. Sony Corp. increased 4.9 percent after people familiar with the matter said the electronics maker is consulting banks about a proposal to take part of its entertainment unit public.
The Topix added 1.1 percent to 1,147.23 as of 10:21 a.m. in Tokyo, with 30 of 33 sectors rising. The measure yesterday lost 3.8 percent, extending the slide from last week’s five-year high to 11 percent. A drop of more than 10 percent from a recent peak is considered a correction. The Nikkei 225 gained 2 percent to 13,859.16 after yesterday tumbling 5.2 percent.
“The correction has to be viewed in the context of an overall bull market for Japanese shares,” said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $126 billion. “We’re just beginning to see the impact of Japan’s monetary easing. Companies in Japan are posting positive earnings growth and economic indicators are improving.”
Japan’s industrial production rose 1.7 percent in April, quickening from 0.9 percent the previous month and exceeding all estimates in a Bloomberg survey of 25 economists. A separate report showed consumer prices dropped for a sixth month.
Real estate shares gained 3.2 percent today, rebounding after yesterday leading declines among industry groups. Fast Retailing Co., the most-heavily weighted company on the Nikkei 225 Stock Average, rose 3.6 percent after sliding yesterday. Sony Corp. increased 4.9 percent after people familiar with the matter said the electronics maker is consulting banks about a proposal to take part of its entertainment unit public.
The Topix added 1.1 percent to 1,147.23 as of 10:21 a.m. in Tokyo, with 30 of 33 sectors rising. The measure yesterday lost 3.8 percent, extending the slide from last week’s five-year high to 11 percent. A drop of more than 10 percent from a recent peak is considered a correction. The Nikkei 225 gained 2 percent to 13,859.16 after yesterday tumbling 5.2 percent.
“The correction has to be viewed in the context of an overall bull market for Japanese shares,” said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $126 billion. “We’re just beginning to see the impact of Japan’s monetary easing. Companies in Japan are posting positive earnings growth and economic indicators are improving.”
Japan’s industrial production rose 1.7 percent in April, quickening from 0.9 percent the previous month and exceeding all estimates in a Bloomberg survey of 25 economists. A separate report showed consumer prices dropped for a sixth month.
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