As the U.S. government finally reached on to a settlement on debt ceiling, its positive impacts were seen in today’s stock trading around the world. The major gainer in the today’s trading was Japan where shares rose to a three-week high. The Topix (TPX) index climbed to a three-week high amidst the positive indication that the U.S. government does not risk default.
A major gainer was Nissan Motor Co. which sells close to 34 percent of its products to North America. The bright prospects after the U.S. government concluded that it would not default gave impetus to Nissan Motors Co. which added 2.2 percent. Similarly, Kansai Electric Power Co. gained 2.8 percent – the company reported preliminary profit which is better than expectations.
Japanese Stocks on the Right Track as the National Economy on Recovery Path
The computer services provider Fujitsu Ltd. surged 5.7 percent in today’s trade. Better performance in the stock market came after Goldman Sachs Group Inc. boosted its outlook on the company. However, it was not a good trading day for Sharp Corp., the TV maker, which slid the most on the Nikkei 225 Stock Average after Deutsche Bank AG cut its price target.
Whereas the Topix gained 0.8 percent to 1,206.25 at the close in Tokyo, the Nikkei 225 added 0.8 percent to 14,586.51. The gain of 0.8 percent is its highest since Sept. 27 for Topix. On the other hand, futures on the Standard & Poor’s 500 Index slipped 0.2 percent amidst the news that the measure that the Congress reached a bipartisan agreement to end the fiscal impasse and debt ceiling.
Indian Stocks Flat, European Stocks Fall
At 12:42pm IST, in today’s trading though the benchmark BSE index is up 0.06 percent, while the broader NSE index 0.03 percent lower. As the U.S. government now does not risk default thanks to their eleventh hour settlement, Indian shares are flat despite information technology stocks weighs on gains.
Government bonds to suffer today as the benchmark 10-year government bond yield down 6 basis points at 8.60 percent. Some investors however believe that the central bank may hike rates at the end of the month will keep a further fall in check.
Earlier European stocks fell from a five-year high. Major losers were Sulzer AG, and Outotec Oyj which lowered their financial targets for the full year.
To contact the reporter of this story: Jonathan Millet at email@example.com