Tag Archives: topix

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Japanese Index Drops As Investors Try to Gauge the Fed’s Next Move

The yen rose against the dollar yesterday as investors continued their hunt for clues on when policy makers may taper the economic stimulus sending Japan’s Topix index spiralling down to its biggest two-day drop in nearly four months.

The carmaker Nissan Motor Co., which gets over a third of its revenue from North America, fell 3.5 percent. A gauge that tracks warehousing and harbour transportation shares experienced a losses among the 33 Topix industry groups, leading Yusen Logistics Co. into a 4.8 percent loss. The package deliverer Yamato Holdings Co. experienced the greatest decline on the Nikkei 225 Stock Average.

The Topic lost 0.9 percent, closing its two-day fall to 2.6 percent, the most since 8th August, while the Nikkei 225 dropped 1.5 percent. The Japanese currency, however, rose 0.3 percent, gaining for a third consecutive day. Investors are now eagerly looking forward to the release of the official NFP report tomorrow as the ADP NFP yesterday showed the most new job on the American market in a year. Other reports, such as the ISM Non-Manufacturing PMI, however, came in at lower levels than forecast.

Although Japanese shares are seen dropping just as fast as they rose, investors are not moving in on the pockets created by the market appearing unwilling to risk that the Fed may actually start tapering soon. The Topix (TPX) had reached a six-month high just on 3rd December before it started dropping again. The measure climbed 43 percent this year, recording the greatest advance among the major developed markets. Today, the index traded at 1.24 times its book value, in comparison with 2.59 for the Standard and Poor’s 500 Index and 1.76 for the Stoxx Europe 600 Index yesterday.

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FOMC Minutes Cause Slide in Asian Stocks

The release of the minutes from the FOMC’s last meeting in late October drove Asian stocks down for a third day in a row and caused the China manufacturing gauge to slip more than expected on speculation that Quantitative Easing will be reduced “in coming months.”

With the prospect of stimulus tapering lessening demand of safe-haven assets, metal prices took a hit with Perseus (AS51) leading the decline of gold miners as it recorded a 10-percent drop. The producer of baby-care products Prince Frog International Holdings Ltd. dove 20 percent in Hong Kong, after it resumed trading following a suspension when a short-seller put the company’s accounting under scrutiny. The Japanese auto-maker Honda Motor Co. rose 3.4 percent as the yen fell, as over 80 percent of its business comes from abroad.

The Asian indices also recorded overall declines with the MSCI Asia Pacific Index falling 0.6 percent to 141.38 as of 2:38 p.m. in Hong Kong as only one of its ten industry drop avoided a slide. At the exclusion of the Japan Index which saw the Topic (TPX) gain 1 percent, the MSCI Asia Pacific Index fell 1.2 percent.

Hong Kong’s Hang Seng Index lost 0.4 percent, while the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong fell 0.9 percent. China’s Shanghai Composite Index dropped 0.5 percent. China’s factory activity showed signs of decline in November to 50.4 form 50.9 in October in a preliminary gauge by the HSBC Holdings Plc and Markit Economics.

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Nikkei

Japanese Indices Stagger Upon Record Stimulus

The Japanese Nikkei 225 Stock Average risks a precipitous drop of about 20 percent to 12,000 unless the government can convince investors of the success of its economic stimulus plans, according to the leader of Japan equities, Nomura Holdings Inc. (8604).

The Nikkei index increased 2.1 percent to 14,876.41 as the trading day closed in Tokyo today, having fallen 4.8 percent from the 5 1/2-year high it reached on 22nd May. Investors worry that the government’s plan to increase sales tax will cripple momentum as the economy is already kept afloat by an unprecedented stimulus.

Japan’s equities, however, still outperform other developed markets for the year, as the Nikkei 225 and the broader Topix indices rose 40 percent through yesterday. Japanese stocks have attracted $108.5 billion this year from overseas institutional investors.

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Topix

Topix Trims Gains Ahead of U.S. Data

After yesterday’s gains, Japan’s Topix index dropped, as profit forecasts disappointed investors before U.S. growth and data that are expected to provide clues about when the Federal Reserve will start reducing stimulus.

Toyota Motor Corp. (7203), the world’s biggest car manufacturer, fell 1.3 percent as its net-income projection did not correspond to estimates. Casio Computer Co., the watch and calculator maker, lost 2.9 percent after increasing its profit outlook less than analysts anticipated. Toray Industries Inc., the producer of carbon fibre used in Boeing Co.’s 787 Dreamliner, gained 5.7 percent after profit surged.

The Topix slid 0.6 percent to 1,184.73 at the close in Tokyo. All but four of the 33 industry groups fell, with volume 11 percent below the 30-day average. The Nikkei 225 Stock Average dropped 0.8 percent to 14,228.44. The U.S. releases gross domestic product data today and employment figures tomorrow.

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Topix Climbs to Three-Week High

The Japanese Index Topix climbed to a three-week high with investors speculating corporate earning to surpass predictions and a weaker yen boosting the country’s exporters.

As Markets closed in Tokyo, the Topix rose 0.6 percent to 12,212.36, its highest level since late September, as all but three of its industry groups advanced. The Nikkei Stock Average also gained today to 14,693.57, adding 0.9 percent. With the yen falling 0.4 percent against the dollar, optimism has risen regarding corporate earnings as the companies you haven’t fully priced in a weaker yen can increase their profit projections.

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