After news came that Federal Reserve chairman nominee Janet Yellen had indicated that she would continue U.S. stimulus, Asian stocks are on the second day rally. Whereas Japan’s Nikkei 225 Stock Average (NKY) surged beyond 15,000 for the first time since May, the MSCI Asia Pacific Index added 1.3 percent to 141.53 as of 12:47 p.m. in Hong Kong.
Following the trend from yesterday’s trading, China’s CSI 300 Index jumped 2.9 percent and may end up capping the biggest increase in two months. This is happening amidst optimism detail of policy changes decided at a Communist Party plenum which discussed this all earlier in the week and would release a statement next week.
Bumper Trading Day for Japanese Companies
After Yellen comments on stimulus tapering, Japanese shares rose to a great extent and the country’s Nikkei 225 Stock Average (NKY) climbed above 15,000 for the first time in the last five months. Nonetheless, the export has increased as the yen weakened past 100 to the dollar on the outlook for U.S. stimulus. A major gainer in today’s trading is Sony Corp.
Sony Corp. which gets about 70 percent of its revenue from outside Japan benefited from the lower Yen and its shares jumping 3.4 percent. Following the trend the insurance company, Dai-Ichi Life Insurance Co. also added 6.6 percent – the company’s better performance is attributed to the fact that it has received a better profit forecast for the next quarter.
Another major gainer was Mitsubishi UFJ Financial Group Inc. which runs the nation’s biggest bank by market value. The banking firm gained 2 percent after boosting its net-income outlook. Overall, insurance and banking companies seem to fare better. There was a better forecast for Mitsubishi UFJ wherein it increased 2 percent to 658 yen, the second-biggest boost to the Topix.
Mitsubishi UFJ Financial Group Inc. raised its full-year profit forecast to 910 billion yen whereas its earlier outlook was just 760 billion yen. Similarly, Mizuho Financial Group Inc. which earlier expected to gain 500 billion yen rose 1.9 percent to 218 yen – it now boosts its profit guidance to 600 billion yen. On the other hand, Nintendo Co. added 5.2 percent to 13,070 yen, which is the highest since August.
However, airlines could not follow the trend as Japan Airlines Co. fell 2.3 percent even on a comparatively better trading day.
To contact the reporter of this story: Jonathan Millet at email@example.com