Japanese stocks rose to an 11-week high


TOKYO, November 11. /Corr. Alex Sarachev/. Trades on the Tokyo stock exchange closed with a slight growth of the main indicators. At the end of trading, the Nikkei index rose by 0.11% to 19691,39 item. The broader TOPIX index rose 0.37% and reached 1595,32 points – its highest level in 11 weeks.

Investors in Tokyo again not been very active after the publication of corporate reports of major financial corporations of Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group Inc.

However, several other Japanese companies have published reports that came in better than expected, which has strengthened the index.

In addition, market participants in Tokyo on positive statistical data on China, in particular, the producer price index (PPI) and consumer price index (CPI), a key inflation indicator in the country.

So, PPI in China in October fell by 5.9% compared with the same period last year. In January-October, the decline was 5.1%. CPI rose in October compared with the same month of the previous year by 1.3%.

Expert opinion

“Thanks to good corporate reports and earnings estimates for the current fiscal year, quotes in Japan are kept at a high level. Among the external factors that support this mood – potential rate hike by the U.S. Federal reserve,” says an analyst at Mizuho Securities Co. Yutaka Miura.

“The current incentive program of the Bank of Japan has proved itself from the best side, since a number of companies received huge profits from exports. It is not excluded that the government will go to further the artificial weakening of the yen,” – said the expert.

“Big investors are now attracted to statistics from China, so the figures for October can have a direct impact on world trading platforms. Fears for China’s economy a little sleep after a summer of crisis on the stock exchange, but continue to be an important factor in the market”, – the analyst of SMBC Nikko Securities Chihiro OTA.

Shares soared after Mitsubishi airliner

After successful flight tests of the new Japanese short-haul airliner Mitsubishi Regional Jet (MRJ) shares of the developer company Mitsubishi Heavy Industries rose by 1.85% to 685 yen.

Japanese paper companies associated with Apple Inc., declined after it became known that an American Corporation will reduce orders for components for 10% of smartphone sales, which were below expectations.

As a result the shares of Alps Electric was down 0.4 percent to 3870 yen, Murata Manufacturing – by 0.5% to 19130 yen.

Shares of food manufacturer Meiji Holdings has grown on 3,12% – to 9930 – yen after the company’s report on growth in operating profit from April to September by 163% compared to last year.

A growth by 15,1% – up to 7620 – yen recorded Daikyonishikawa Corp., involved in the supply of plastic parts for cars, after the increase in Corporation profit forecast for the financial year.

At the close of trading, the Japanese currency traded at 122,88-122,90 yen per dollar.