Japanese Stocks Climb on U.S. Jobs Report, Extension of Tax Cut

December 26, 2011, 3:00 AM EST By Norie Kuboyama

Dec. 26 (Bloomberg) -- Japanese stocks gained, with the Nikkei 225 Stock Average rising to its highest in nearly two weeks, after U.S. unemployment claims unexpectedly dropped and American lawmakers extended a tax cut.

Fanuc Corp., a maker of industrial robots that earns 75 percent of its revenue overseas, gained 2.9 percent. Mitsubishi Corp., Japan’s biggest commodities trader by revenue, rose 1.7 percent after oil and metals prices increased. Canon Inc. climbed 1.3 percent after the Nikkei newspaper said the camera maker may pay a 120 yen dividend this year.

“The U.S. economic data is not bad on the whole,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees about $104 billion. “Congress passed a two-month U.S. payroll tax cut extension, which reduced concerns in the market because investors had worried the end of the tax cut would likely weigh on January-March GDP.”

The Nikkei 225 rose 1 percent to 8,479.34 at the 3 p.m. close in Tokyo, the highest since Dec. 14. The broader Topix advanced 0.5 percent to 726.44, with trading volume 38 percent below the 30-day average.

The Topix has fallen 19 percent this year amid concern U.S. growth is sputtering and Europe’s debt crisis will damage the banking system, damping demand in two of Japan’s biggest export markets. The decline has cut the price of shares on the index to 0.87 times book value, near the lowest since March 2009.

Payroll Tax Cut

The Standard & Poor’s 500 Index added 0.9 percent in New York on Dec. 23 as claims for unemployment benefits unexpectedly dropped last week to the lowest since April 2008 and the U.S. Congress passed a two-month extension of a payroll tax cut eight days before it was due to expire.

“The worst-case scenario was avoided, and that was a positive for stocks,” said Naoki Murakami, chief economist at Monex Group Inc. in Tokyo.

JPMorgan Chase & Co. and Nomura Holdings Inc. cited the tax cut extension as a positive for the economy. JPMorgan raised its estimate for U.S. growth to 2.5 percent in 2012 from an earlier projection of a 1.9 percent rise.

Commodity prices gained on speculation an economic recovery in the U.S. may spur demand for oil and industrial metals. Crude oil for February delivery gained 0.2 percent to $99.68 a barrel in New York on Dec. 23, the highest settlement since Dec. 13. The London Metal Exchange Index of prices for six industrial commodities including copper and aluminum rose 0.7 percent.

Turnover on the first section of the Tokyo Stock Exchange fell to 500.8 billion yen ($6.4 billion) today, the lowest on a full-day basis since May 27, 2003.

The following are among the most active shares in the Japanese market today. Stock symbols are in parentheses after company names.

Machinery makers: Okuma Corp. (6103 JT), SMC Corp. (6273 JT) and other companies in the sector advanced after U.S. orders for durable goods such as commercial aircraft rose in November by the most in four months. Okuma gained 2.7 percent to 497 yen. SMC added 1.6 percent to 12,230 yen, while THK Co. (6481 JT) climbed 2.4 percent to 1,544 yen.

Canon Inc. (7751 JT), the world’s biggest camera maker, gained 1.3 percent to 3,460 yen, after the Nikkei reported the company is likely to pay a 120 yen dividend for this year, matching last year’s record payment. Canon anticipates an earnings recovery next year after Thailand floods and a strengthening yen cut profit, the report said.

Ebara Corp. (6361 JT), a hydraulic pump maker, climbed 3 percent to 278 yen, after the Nikkei said Ebara will boost production capacity in Southeast Asia. The company will invest as much as 3 billion yen to double sales in the region in three years, the report said.

Japan Hotel & Resort Inc. (8981 JT) rallied 5.8 percent to 164,900 yen, while Nippon Hotel Fund Investment Corp. (8985 JT) rose 1.2 percent to 187,300 yen after the real estate investment trusts said they will merge on April 1. Japan Hotel will be delisted shortly before the tie-up, according to a statement.

Makita Corp. (6586 JT), a maker of electric power tools, jumped 7.9 percent to 2,537 yen, its biggest rise since March 16. The company said it will buy back up to 1.45 percent of its outstanding shares.

Tokyo Electric Power Co. (9501 JT), the utility known as Tepco, lost 4.1 percent to 213 yen after the Nikkei reported the company may seek several hundred billion yen in fresh aid to compensate nuclear disaster victims. Tepco received 890 billion yen in state assistance last month.

-- With assistance from Toshiro Hasegawa in Tokyo. Editor: Jim Powell, Jason Clenfield.

To contact the reporters on this story: Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

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Asian Stocks Climb on Optimism Over Greece Aid; Sony Advances

May 31, 2011, 7:03 AM EDT By Jonathan Burgos

May 31 (Bloomberg) -- Asian stocks rose, with the regional benchmark index paring the biggest monthly decline in a year, amid speculation European officials will pledge more financial aid to Greece.

Cosco Pacific Ltd., the Hong Kong-based operator of container facilities in Greece, climbed 3.8 percent. Sony Corp., the maker of PlayStation gaming consoles that counts Europe as its biggest market outside of Japan, gained 1.9 percent in Tokyo. Hyundai Heavy Industries Co., the world’s biggest shipbuilder, surged 11 percent in Seoul after winning an order for two liquefied natural gas tankers.

The MSCI Asia Pacific Index gained 1.4 percent to 136.11 as of 7:24 p.m. in Tokyo, the highest close since May 13. More than six stocks advanced for each that fell in the gauge, which last week completed its longest string of weekly losses in two years as concern deepened over Europe’s debt crisis and amid speculation a slowing global recovery will crimp earnings.

“Talk of additional aid for Greece has given investors some relief for now,” said Andrew Pease, Sydney-based senior investment strategist for the Asia-Pacific region at Russell Investment Group. “These are just temporary solutions. That’s not a sustainable solution. Asian markets, particularly China, look genuinely cheap.”

Japan’s Nikkei 225 Stock Average climbed 2 percent, the steepest gain since March 30. Stocks extended gains today after a report showed Japan’s industrial production, disrupted by the March disaster, may rebound to near pre-earthquake levels by next month. The data also showed output grew less than economists expected last month.

India Economic Growth

“On the level of individual firms we’ve had a lot of anecdotal evidence that supply chains were recovering, but today’s figures are significant because they confirm that production is coming back,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees the equivalent of $104 billion.

India’s Sensitive Index advanced 1.5 percent. The nation’s economic growth eased to 7.8 percent in the three months to March 31 as manufacturing and services moderated, a slowdown that has yet to curb pressure for more increases in interest rates to damp inflation.

South Korea’s Kospi Index advanced 2.3 percent. Australia’s S&P/ASX 20 Index gained 0.9 percent. Hong Kong’s Hang Seng Index increased 2.2 percent, while China’s Shanghai Composite Index added 1.4 percent, its first increase in nine days.

European Union leaders will decide on additional aid for Greece by the end of June and have ruled out a “total restructuring” of the nation’s debt, said Jean-Claude Juncker, head of the euro-area finance ministers’ group. Greek Prime Minister George Papandreou said on May 27 he’ll press ahead with new austerity measures after failing to win backing from the main opposition parties.

‘Relief to Exporters’

Cosco Pacific advanced 3.8 percent to HK$15.42 in Hong Kong. Samsung Electronics Co., the world’s largest maker of televisions that gets one-fifth of its sales from Europe, climbed 2 percent to 902,000 won in Seoul. Sony, Japan’s biggest exporter of consumer electronics, rose 1.9 percent to 2,163 yen in Tokyo.

Japanese exporters also advanced as the euro rose against the yen, boosting the value of repatriated sales from Europe. Toyota Motor Co., the world’s biggest carmaker, gained 2.1 percent to 3,400 yen. Mazda Motor Corp., the Japanese carmaker most dependent on European sales, jumped 1.5 percent to 205 yen. Canon Inc., the camera maker whose largest source of revenue is Europe, advanced 2.1 percent to 3,905 yen.

Debt Crisis

“Even though the euro has weakened in the midst of Greece’s debt crisis, the currency is having a little comeback and that’s given some relief to exporter shares,” said Daiwa’s Nagano.

The MSCI Asia Pacific Index lost 2.5 percent this year through yesterday, compared with gains of 5.8 percent by the S&P 500 and 1.1 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 13.4 times estimated earnings on average, the same as for the S&P 500, and compared with 11.1 times for the Stoxx 600.

Hyundai Heavy surged 11 percent to 505,000 won in Seoul, the biggest advance on the MSCI Asia Pacific Index. The company won an order for two liquefied natural gas tankers from Dynagas Ltd. of Greece.

Hyundai Engineering & Construction Co., a South Korean builder, increased 2.1 percent to 84,000 won. The company said it received orders worth $230 million from Singapore and Iraq.

Hanwha Chemical Corp., South Korea’s fourth-largest maker of plastic resins by sales, jumped 9.6 percent to 48,950 won after Samsung Securities raised its share-price forecast to 59,500 won from 41,000 won and maintained its “buy” rating.

‘Stock Valuations’

“While stock valuations are looking attractive, we’re still cautious as global growth is slowing,” said Diane Lin, a Sydney-based fund manager at Pengana Capital Ltd., which has about $1 billion of assets. “Europe’s situation is still very difficult.”

Futures on the Standard & Poor’s 500 Index rose 1 percent today. U.S. markets were closed yesterday for a public holiday.

U.S. economic data to be released this week are expected to show further evidence that growth in the world’s biggest economy is slowing. Nonfarm payrolls are expected to rise by 185,000 workers in May, less than the 244,000 increase in April, according to the median forecast in a Bloomberg News survey before Labor Department figures to be released on June 3. Another report may show factory orders grew at the slowest pace in seven months.

Renewable Energy

Renewable-energy companies rallied after German Chancellor Angela Merkel’s coalition endorsed yesterday a plan to close all of Germany’s atomic-power plants by 2022. The country will double energy output from renewable sources by 2020, Merkel said yesterday at a press conference in Berlin.

Taewoong Co., a South Korean maker of parts for wind power plants, surged 8.3 percent to 44,400 won in Seoul. OCI Co., the nation’s biggest maker of polysilicon that’s used in solar panels, jumped 9 percent to 493,000 won. GCL-Poly Energy Holdings Ltd., China’s largest maker of the same material, climbed 5.3 percent to HK$4.17 in Hong Kong.

--Editor: Reinie Booysen

To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.

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European Stocks Climb on Greek Aid Speculation; Alpha Bank Jumps

May 31, 2011, 7:16 AM EDT By Sarah Jones

May 31 (Bloomberg) -- European stocks climbed after the euro rallied to a three-week high as investors speculated that European officials will sanction additional financial assistance for Greece. U.S. futures and Asian shares advanced.

Alpha Bank SA and EFG Eurobank Ergasias SA led a rally in Greek banks, climbing more than 5 percent in Athens trading. Vestas Wind Systems A/S led alternative-energy stocks higher for a second day. Steelmakers also advanced after Voestalpine AG posted higher full-year profit.

The Stoxx Europe 600 Index rose 0.9 percent to 281.43 at 11:51 a.m. in London, paring this month’s loss to 0.9 percent. The gauge has fallen for four straight weeks amid speculation that Greece will restructure its debt. Since reaching this year’s high on Feb. 17, the Stoxx 600 has retreated 3.3 percent.

“We have gone through a period in which a lot more pessimism surrounding this topic has come into the market and we are seeing something of a rebound off the back of that,” said Valentijn Van Nieuwenhuijzen, head of strategy at ING Investment Management, in a Bloomberg Television interview. “The likelihood of an explosion of the Greek situation over the next couple of months seems to have come down.”

The euro rallied against the dollar after Luxembourg Prime Minister Jean-Claude Juncker said European leaders will decide on a new aid package for Greece by the end of next month, while also ruling out a “total restructuring” of the nation’s debt. Junker spoke yesterday in Paris.

Inspectors from the European Union, the International Monetary Fund and the European Central Bank plan to conclude their review of Greece’s progress in meeting the terms of last year’s 110 billion-euro ($158 billion) bailout in the coming days. The EU will then formulate its plan for additional aid.

German Demands

The Wall Street Journal said Germany may stop demanding that Greece reschedules its bonds so that the Mediterranean nation can get a new package of loans. The newspaper cited unidentified people.

European stocks were little changed yesterday in reduced trading after U.K. and U.S. markets were closed for public holidays. Futures on the Standard & Poor’s 500 Index expiring next month advanced 1 percent today, while the benchmark MSCI Asia Pacific Index climbed 1.4 percent.

A U.S. report today may show that home prices in the world’s largest economy slumped in March by the most in 16 months, according to economists. The Case-Shiller report is due at 9 a.m. New York time. Separate figures may show manufacturing slowed in May, while consumer confidence improved.

German Retail Sales

In Europe, German retail sales rose in April as unemployment fell below 3 million for the first time in almost 19 years. Separate figures from the European Union’s statistic office showed that inflation in the euro area slowed in May to 2.7 percent from 2.8 percent in April, giving the ECB room to keep borrowing costs on hold next month.

Alpha Bank, Greece’s third-biggest lender, rallied 5.8 percent to 3.08 euros in Athens, while Eurobank, the country’s second-largest bank, surged 8 percent to 3.10 euros. Both stocks tumbled more than 6 percent yesterday as the IMF reviewed Greece’s efforts toward meeting fiscal targets.

Standard Chartered Plc rose 1.8 percent to 1,634.5 pence after Nomura Holdings Inc. raised its recommendation for the U.K. bank that makes the majority of its profit in Asia to “buy” from “neutral,” saying the firm remains “well positioned’ for the long term.

Analysts also raised their price estimate for the shares to 1,800 pence from 1,770 pence. The revised projection is 12 percent higher than last week’s closing price.

Vestas, Solarworld, Q-Cells

Vestas rallied 5.5 percent to 159.30 kroner in Copenhagen, while Germany’s Solarworld AG advanced 2.5 percent to 9.86 euros and Q-Cells SE surged percent 7.8 percent to 2.07 euros.

Alternative energy stocks rallied for a second day after Germany yesterday set 2022 as the final date to close its nuclear reactors, making it the largest nation to abandon atomic power.

Voestalpine advanced 2.8 percent to 34.25 euros after Austria’s largest steelmaker said fiscal full-year profit rose almost five-fold to 512.7 million euros as the global economy improved.

‘‘Further positive economic development in the second half of calendar year 2011 can be expected,” the company said. “Against this backdrop a further significant improvement of Voestalpine results should be possible in 2011/12.”

Kloeckner & Co. SE, the German steel trader operating in 15 countries in Europe and North America, gained 1.2 percent to 20.34 euros and ArcelorMittal, the world’s largest steelmaker, rose 1.5 percent to 23.24 euros. Salzgitter AG, Germany’s second-biggest steelmaker, jumped 3.1 percent to 51.62 euros.

Barratt, Britvic

Barratt Developments Plc, the U.K.’s biggest homebuilder by volume, climbed 2.5 percent to 115.3 pence after the Centre for Economics & Business Research forecast that U.K. house prices will rise 16 percent over the next four years after slipping 1.4 percent in 2011. Taylor Wimpey Plc rose 1.2 percent to 36.8 pence.

Britvic Plc increased 1.4 percent to 439.1 pence after Deutsche Bank AG raised its share price estimate for the maker of Robinsons’ fruit drinks by 5.6 percent to 475 pence.

Wolseley Plc jumped 4.1 percent to 2,072 pence after the Sunday Times reported that the supplier of heating and plumbing products will sell three of its U.K. business for 300 million pounds ($495 million). The newspaper did not say where it got the information.

--With assistance from Linzie Janis in London. Editors: Will Hadfield, Andrew Rummer

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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