30 August 2005, 13:16  Tokyo shares close higher as oil price concerns ease

Share prices closed higher as worries over high oil prices eased, prompting investors to look past disappointing unemployment and consumer spending data, dealers said. The Nikkei 225 Stock Average closed up 143.31 points or 1.2 pct at 12,453.14, its biggest gain since August 22 and the fifth rise in seven trading days. The broader-based TOPIX index of all First Section issues rose 14.96 points or 1.2 pct to 1,273.60. Gainers overwhelmed decliners 1,064 to 435, with 144 unchanged. Volume reached 1.89 bln shares, well above yesterday's 1.55 bln shares. Dealers said investors took heart that crude prices eased after topping 70 usd per barrel yesterday to close at 67.20 usd in New York trading. The benchmark October light sweet crude contract was hovering at 68 usd per barrel in Asian trading hours as traders assessed the impact of Hurricane Katrina on the crude-producing Gulf of Mexico region. "Investors are increasingly getting accustomed to high oil prices now," as oil prices have been gradually rising, said Hideyuki Suzuki, a strategist at SBI Securities Co Ltd. "Moreover, Japan has a history that it achieved economic growth after the oil crisis [in the 1970s]." Analysts said market participants shrugged off the latest employment data in Japan which showed the jobless rate rising to 4.4 pct in July from 4.2 pct in June, the first rise in five months, as well as a drop in household spending. "On the surface, the new [unemployment rate] seems discouraging," said Tatsuya Torikosi, senior economist at Daiwa Institute of Research. "But looking at the longer-term trend, the jobless rate has been easing since 2002 when the unemployment rate reached 5.5 pct." Shares in almost all sectors advanced, particularly in steel and banking, while oil-related issues suffered. Among steel makers, Nippon Steel jumped 16 yen or 5.25 pct to 321, Sumitomo Metal Industries leapt 10 yen or 4.1 pct to 252 and JFE Holdings surged 140 yen or 4.6 pct to 3,200. Kobe Steel added 11 yen or 4.4 pct to 263 and Tokyo Steel Manufacturing rose 44 yen or 2.8 pct to 1,607. Among banks, Mizuho Financial group gained 24,000 yen or 4.0 pct to 619,000, Mitsubishi Tokyo Financial Group jumped 40,000 yen or 3.7 pct to 1,130,000, UFJ Holdings surged 23,000 yen or 3.4 pct to 696,000 and Resona Holdings rose 7,000 yen or 3.0 pct to 238,000.

© 1999-2024 Forex EuroClub
All rights reserved