Japanese Stocks Rise on Commodity Producers and Banks

Strategic Insights -

Following a significant earthquake in Chile, which is the world's largest producer of copper, Japanese stocks surged, led by commodity producers and banks. Metal prices increased, benefiting companies such as Sumitomo Metal Mining Co., Furukawa Co., and Mitsubishi UFJ Financial Group Inc. The Nikkei 225 Stock Average climbed 0.5 percent to 10,172.06, while the broader Topix index gained 0.5 percent to 898.93.

Key Takeaways:

  • Japanese stocks rose 0.5 percent, with commodity producers and banks leading the gains.
  • Sumitomo Metal Mining Co. gained 1.1 percent as copper futures jumped 6.2 percent after the earthquake in Chile.
  • Furukawa Co., a maker of civil engineering machinery, surged 5.1 percent to 104 yen, the steepest gain in the Nikkei.
  • Mitsubishi UFJ Financial Group Inc. advanced 1.6 percent to 456 yen, as its investment recommendation was lifted to overweight from neutral at JPMorgan.
  • JPMorgan analyst Katsuhito Sasajima raised ratings on Japan's biggest banks, including Mitsubishi UFJ, Sumitomo Mitsui Financial Group Inc., and Mizuho Financial Group Inc. to overweight from neutral.
  • The London Metal Exchange Index, a measure of six metals including copper and zinc, gained 2.8 percent on Feb. 26.
  • Copper futures for March 10 delivery jumped 6.2 percent, while crude oil for April delivery increased $1.49 to settle at $79.66 a barrel in New York.
  • Builders also rose following the earthquake in Chile, with Furukawa, Daiwa Odakyu Construction Co., Fudo Tetra Corp., and Raito Kogyo Co. leading the gains.

Statistics:

  • The Nikkei 225 Stock Average climbed 0.5 percent to 10,172.06 at the 3 p.m. market close in Tokyo.
  • The broader Topix index gained 0.5 percent to 898.93.
  • The Topix has fallen 1 percent this year, while the Standard & Poor's 500 Index in the U.S. dropped 1 percent and Europe's Dow Jones Stoxx 600 Index slumped 3.2 percent.
  • Metals producers and banks rose 2.2 times the market average.
  • Sumitomo Metal Mining advanced 1.1 percent to 1,276 yen.
  • Mitsubishi Materials Corp., Japan's third-largest copper producer, rose 0.4 percent to 231 yen.
  • Nippon Mining Holdings Inc., Japan's biggest copper producer and an oil refiner, climbed 2.5 percent to 454 yen, its highest close since Sept. 24.

Sources:

  • Euclid Infotech Pvt. Ltd.
  • Syndigate.info an Albawaba.com company