Japanese Stocks Rise on Commodity Producers and Bank Shares

Strategic Insights -

Japanese stocks surged, led by commodity producers and banks, after metal prices jumped following an earthquake in Chile, the world's largest copper producer. Sumitomo Metal Mining Co. led the gains, climbing 2.8% after copper futures surged 4.9%. Mitsubishi UFJ Financial Group Inc., Japan's largest bank by market value, advanced 2.2% as its investment recommendation was lifted to "overweight" from "neutral" at JPMorgan Chase & Co.

Key Takeaways:

  • Japanese stocks rose 0.7% to 10,194.94, with the Nikkei 225 Stock Average and broader Topix index both gaining 0.7%.
  • Commodity producers, led by Sumitomo Metal Mining Co., climbed 2.8% to 1,297 yen, while Mitsubishi Materials Corp. rose 2.6% to 236 yen.
  • Nippon Mining Holdings Inc., Japan's largest copper producer, advanced 2.5% to 454 yen, its highest close since September 24.
  • The London Metal Exchange Index, a measure of six metals, including copper and zinc, gained 2.8% on February 26.
  • Crude oil for April delivery increased $1.49 to settle at $79.66 a barrel in New York.
  • Bank shares, led by Mitsubishi UFJ Financial Group Inc., rose 2.2% after JPMorgan lifted its investment recommendation to "overweight" from "neutral".
  • Risk money is flowing into commodities after the earthquake in Chile, said Yoshihiro Ito, a senior strategist at Tokyo-based Okasan Asset Management Co.
  • Bank shares have lagged behind the market, so they should rise, according to Ito.

Statistics:

  • 0.7% gain in Japanese stocks to 10,194.94.
  • 2.8% surge in Sumitomo Metal Mining Co. to 1,297 yen.
  • 2.6% rise in Mitsubishi Materials Corp. to 236 yen.
  • 2.5% gain in Nippon Mining Holdings Inc. to 454 yen.
  • $1.49 increase in crude oil for April delivery to settle at $79.66 a barrel.
  • 2.8% gain in the London Metal Exchange Index.
  • 0.7% gain in the Nikkei 225 Stock Average and broader Topix index.
  • 31 times earnings valuation of Japanese stocks compared to 14 times for the S&P 500 and 12 times for the Dow Jones Stoxx 600.
  • $8.2 billion assets under management by Tokyo-based Okasan Asset Management Co.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Syndigate.info
  • Albawaba.com
  • JPMorgan Chase & Co.
  • Tokyo Stock Exchange
  • London Metal Exchange
  • Nippon Mining Holdings Inc.
  • Mitsubishi Materials Corp.
  • Mitsubishi UFJ Financial Group Inc.
  • Sumitomo Metal Mining Co.
  • Okasan Asset Management Co.