Monday, December 24, 2007

Japan's Nikkei 225 Futures Rise on Weaker Yen, U.S. Spending

Dec. 25-- Japan's Nikkei 225 Stock Average futures climbed in Chicago after the yen weakened against the dollar and U.S. consumer spending jumped more than forecast, boosting the outlook for companies including Nintendo Co.

U.S.-traded receipts of Nintendo, the maker of the top- selling Wii game console, jumped 3.4 percent from the closing price in Tokyo on Dec. 21. Canon Inc., the world's largest seller of digital cameras, added 2.4 percent. Japan's market was closed yesterday for a holiday.

``The domestic market continues to be swayed by developments in the U.S.,'' said Terunobu Kinoshita, who helps manage $785 million at Fund Creation Co. in Tokyo. ``With the U.S. performing strongly heading into the end of the year, we can expect Japan to also do well.''

Nikkei 225 futures expiring in March closed in Chicago yesterday at 15,685, up from 15,320 in Osaka and 15,295 in Singapore on Dec. 21. The Bank of New York Japan ADR Index, which tracks the nation's American depositary receipts, advanced 1.3 percent from the same date.

Mitsui & Co. may lead advances by commodities-related companies today after prices of oil and metals jumped.

The yen recently weakened to 114.25 versus the dollar, from 113.08 at the close of trading on Dec. 21. Japan's currency fell to a six-week low yesterday in New York. A weaker yen increases the value of Japanese exporters' dollar-denominated sales when converted into local currency.

Spending Data

U.S. consumer spending rose 1.1 percent last month, the Commerce Department said on Dec. 21, up from a previous estimate. That was more than economists had forecast.

The Standard & Poor's 500 Index jumped 1.7 percent on Dec. 21 and 0.8 percent yesterday, reaching the highest level in two weeks.

Gains may be limited today after U.S. market research group ShopperTrak RCT Corp. said after the close of New York trading that spending fell 2.2 percent for the week through Dec. 22 from a year earlier. Discounter Target Corp. said separately that sales at stores open at least a year may decline in December after customer visits slowed following the Thanksgiving holiday.

Mitsui & Co. is Japan's second-largest trading company and Inpex Holdings Inc. is the nation's biggest oil explorer. Crude oil for February delivery rose 3.4 percent in the last two days to $94.13 a barrel in New York. A measure of six metals traded on the London Metal Exchange, including copper and zinc, added 2.8 percent.

Mitsubishi Chemical

NTT DoCoMo Inc., Japan's biggest mobile phone service provider, may climb after the Nikkei newspaper said the company will partner with Google Inc. to lure subscribers.

Mitsubishi Chemical Corp. may drop after the Nikkei said a fire at the company's plant in Ibaraki prefecture, north of Tokyo, may hinder their strategy of diversifying into raw materials for ethylene and other products.

THK Co., a maker of parts that enable machines such as automatic doors to move, may advance after Morgan Stanley boosted its recommendation on the shares to ``overweight'' from ``equal weight.''

Last week, the Nikkei slid 1.7 percent to 15,257 and the Topix index dropped 2.1 percent to 1,469.20.

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