Japan's Nikkei 225 Index Advances, Led By Commodity And Oil Related Stocks On Higher Crude Oil Prices; Automobile Stocks Slide
The stock market in Tokyo, Japan is trading in the positive territory on Monday morning, led by commodity related stocks on higher crude oil prices in the international market. The demand for resources such as copper, from emerging markets such as those in China and India, are fuelling the stock price of commodity related stocks across the region and Japanese investors are also following the same suit of purchase resource related stocks, which primarily results in higher stock indices. The benchmark Nikkei 225 Index is presently trading at 17,374.89, up 43.72 points, or 0.25%, while the broader TOPIX Index is trading at 1,659.10, up 0.38 points. The US dollar is presently quoted at 117.52/56 yen, compared to previous closing in the range of 117.30/33 yen on Friday, in Tokyo. Commodity related stocks led the gains in the market after the price of crude oil firmed up in the international market on fears that Turkey might initiate steps to attack Kurdish Workers Union, located in Northern part of Iraq. The price of oil, which briefly surpassed the US$84 a barrel mark, is recently quoted at US$83.61 a barrel in after-hours trading on the New York Mercantile Exchange. Shipping stocks were also trading in the positive territory after the Baltic Dry Index gained to a record high on Friday with a gain of 1.7%. The share price of Mitsui & Co., the second largest trading house in the country, advanced by about 2.4%, while the share price of Sumitomo Metal Mining, the largest producer of nickel in the country, advanced by more than 1.8%. The share price of Mitsui O.S.K. Lines, the second biggest shipping line in the country, advanced by more than 1.5%. The stock prices of major automobile exporters declined after HSBC Securities, in a note to its clients, had stated that the second half profits for the sector might miss estimates and will be lower than projected. The share price of Toyota Motor Corp., the largest automaker in the world, declined by 1.5% while the share price of Honda Motor, the second largest manufacturer in the country, declined by about 1.3%.
October 14, 2007 11:27 PM