Japanese Stocks Snap Four-Day Loss on Fed Meeting Minutes

Japanese stocks rose, with the
Topix (TPX) index heading for its first gain in five days, after
minutes of the Federal Reserve’s meeting allayed concern about
the timing of interest-rate increases.

Nissan Motor Co., which gets about 34 percent of sales in
North America, climbed 1.1 percent. NSK Ltd. surged 5.4 percent,
leading gains on the Nikkei 225 Stock Average, after Goldman
Sachs Group Inc. advised buying the bearings maker’s shares.
Toyota Motor Corp. slid 1.7 percent, extending yesterday’s
slump, after recalling more than 6 million vehicles. Japan’s No.
1 company by market value is poised for a sixth day of declines,
which would be the longest stretch since September 2012.

The Topix added 0.7 percent to 1,158.59 at the break in
Tokyo after slumping 2.1 percent yesterday. The Nikkei 225
increased 0.7 percent today to 14,398.19. The yen rose 0.1
percent to 101.88 per dollar after sliding 0.2 percent
yesterday. The Standard & Poor’s 500 Index jumped 1.1 percent
yesterday after the minutes reinforced Janet Yellen’s message
that the interest-rate forecasts of policy makers are less
important than the Fed’s post-meeting statement.

“The Fed minutes made it clear that they’ll continue
monetary easing,” said Kenichi Kubo, a senior fund manager at
Tokio Marine Asset Management Co. “There was a view that Yellen
was hawkish, but now she is considered dovish again and that’s
giving the market a sense of relief.”

The Topix slid 5.5 percent over the previous four days
after a nine-day rally, its longest since 2011, ended on April
3. Japanese shares slumped 7.6 percent in the quarter ended
March, the worst performance in the developed world, as the yen
strengthened and concern grew that an April 1 sales-tax increase
will stall Japan’s economy.

Machine Orders

Japan’s core machine orders, an indicator of future capital
spending
, fell 8.8 percent in February from the previous month,
Cabinet Office data showed today. Economists surveyed by
Bloomberg had expected a 2.6 percent decline.

Futures on the S&P 500 slipped 0.1 percent today. The
equity measure advanced yesterday after several Fed policy
makers said a rise in their median projection for the benchmark
interest rate exaggerated the likely speed of tightening,
according to minutes of their March 18-19 meeting released
yesterday.

Last month after central bank officials predicted that the
key rate would rise faster than previously projected, Yellen
downplayed the importance of the forecasts, even as she said
that rates might start to rise “around six months” after the
Fed ends its bond-purchase program.

Japanese shares pared gains after China’s exports and
imports unexpectedly fell in March as Premier Li Keqiang tries
to stabilize an economy headed for its slowest growth since the
global financial crisis.

Among other shares that rose, Fujitsu Ltd. gained 2.6
percent to 603 yen after the computer maker’s target price was
raised at Credit Suisse Group AG.

The Topix traded at 1.13 times book value as of yesterday,
compared with 2.62 for the S&P 500 and 1.88 for the Stoxx Europe
600 Index.

To contact the reporter on this story:
Yoshiaki Nohara in Tokyo at
ynohara1@bloomberg.net

To contact the editors responsible for this story:
Sarah McDonald at
smcdonald23@bloomberg.net
Tom Redmond

Source Article from http://www.bloomberg.com/news/2014-04-10/japanese-stocks-snap-four-day-loss-on-fed-meeting-minutes.html
Japanese Stocks Snap Four-Day Loss on Fed Meeting Minutes
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