Nikkei climbs 0.98% on upbeat U.S. output data

11:07, July 05, 2011      

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Tokyo stocks rose Monday, with the key Nikkei stock index adding 0.98 percent to a two-month closing high as upbeat U.S. manufacturing data coupled with gains made on other Asian bourses lifted investor sentiment and saw riskier assets chased higher.

The majority of sectors on the Tokyo Stock Exchange advanced on the first trading day of the week and brokers said that real estate and financial issues found particular favor, along with some export-related issues as investors were heartened by the latest manufacturing data released in the United States.

The U.S. Institute for Supply Management report showed on Friday that its June index of national factory activity rose unexpectedly to 55.3 from 53.5 the previous month, beating median market forecasts for a 51.8 point increase.

Local traders said that the news that manufacturing in the U.S. had increased for the first time in four months in June, was interpreted here as a sign that the recent downbeat economic reports coming out of the U.S. maybe temporary and the residual effects of the March 11 quake and tsunami in Japan on global supply chains are decreasing.

"Sentiment has not turned immediately bullish, but it seems the recent U.S. slowdown was a result of temporary factors such as disruptions in Japan's supply chain and higher gasoline prices," said Cosmo Securities strategist Toshikazu Horiuchi.

Other analysts suggested the U.S. economy may be at a turning point and is set to improve appreciably by the end of the year.

"The increase in the manufacturing index shows U.S. consumption is favorable, and signals the economy will further recover through the end of this year," said Takero Inaizumi, head of equity research in Tokyo at Mizuho Investors Securities Co.


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Source:Xinhua
 
 
     
 
 
 
     
 
 
 
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(Editor:刘晓宁)

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