Japanese Shares Rebound From Biggest Drop in Two Months
Sony Corp., a TV manufacturer that gets almost 70 percent of sales abroad, added 2.5 percent. Mitsubishi Motors Corp. climbed the most on the Nikkei 225 Stock Average after a report the carmaker will buy back preferred shares issued to some of its group companies. Nippon Electric Glass Co. (5214), which makes fluorescent light tubes, jumped 3.2 percent after raising its profit forecast. JFE Holdings Inc. fell for a second day after the steelmaker’s earnings outlook missed analyst estimates.
The Topix added 0.8 percent to 1,187.56 as of 9:29 a.m. in Tokyo, with all but three of its 33 industry groups gaining. The gauge sank 2.1 percent on Oct. 25, its steepest decline since Aug. 7. The Nikkei 225 Stock Average increased 0.9 percent to 14,221.01 today. Japan’s currency slid 0.1 percent to trade at 97.53 per dollar after two weeks of advances.
“Now that the yen has stopped gaining, investor sentiment is recovering and we’ll probably see widespread buying,” said Toshiyuki Kanayama, a senior market analyst at Monex Securities Inc. “Still, if the U.S. delays tapering, there’s going to be pressure on the dollar and the yen may strengthen, so the upside is limited.”
Futures on the Standard & Poor’s 500 Index rose 0.2 percent today. U.S. stocks completed a third straight week of gains Oct. 25, sending the S&P 500 to a record, as earnings beat estimates and weak economic data fueled speculation the Federal Reserve will put off reducing stimulus. Consumer confidence in the U.S. dropped to a 10-month low, a private report showed Oct. 25.
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