Nikkei posts biggest gains in one year as shippers hit 10-year highs
TOKYO, June 22 (Reuters) – Japanese stocks surged Tuesday, following Wall Street overnight, boosted by shipping stocks after Mitsui OSK Lines more than tripled its half-year net profit forecast.
The Nikkei stock average jumped 3.12% to 28,884.13, with 225 stocks all advancing, and marked its biggest percentage gain since June of last year. The index fell 3.3% in the previous session.
Shippers led the gains, with the top three companies registering an increase of more than 10%, after Mitsui OSK Lines raised its six-month net profit forecast to 170 billion yen ($ 1.54 billion) from 50 billion yen.
Mitsui OSK was among the top performing stocks on the Topix, surging 10.2% to a decade high. Rival Kawasaki Kisen advanced 10.2% and also hit a ten-year high, while Nippon Yusen gained 10.3%.
The broad Topix rose 3.16%, reversing Monday’s 2.4% decline as all sectors advanced.
Value stocks outperformed, with the Topix Value Index rising 3.4%, compared to a 3% gain for the Topix Growth Index.
The sell-off in global equities last week, which spilled over to Asian equities on Monday, came after the Fed unexpectedly signaled earlier rate hikes and St. Louis Fed Chairman James Bullard said the shift to faster policy tightening was a “natural” response to economic growth. .
However, US stocks posted strong gains on Monday, with the S&P 500 advancing 1.4%.
“After the Wall Street rebound, investors are confident to start buying back Japanese stocks,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
“The market has forecast a Fed rate hike for next year, but that seems to be it for now. I don’t think three or four hikes are included in the price. “
Automakers were among the other notable actions, with Suzuki Motor up 7.4% and Toyota Motor adding 3.3% amid a weaker yen, boosting earnings for exporters.
Homebuilders also advanced, with Daiwa House and Sekisui House increasing by 6.2% and 6.1% respectively.
“The vaccine rollout is progressing in Japan, so gradually economic activity will return to normal,” said Ichikawa, who is raising stocks such as home builders.
$ 1 = 110,2700 yen Additional reporting by Hideyuki Sano, edited by Amy Caren Daniel