Monday, July 4, 2011

Tokyo stock market monday july 4 2011,Honda Motor share prices closed up

Tokyo stock market monday july 4 2011,Honda Motor share prices closed up : Tokyo stocks rose Monday with the Nikkei Stock Average briefly climbing above the 10,000 mark for the first time in two months as optimism over the U.S. economic outlook buoyed Honda Motor and other exporters.

The Nikkei gained 97.02 points, or 1.0%, to 9965.09 following a 3.0% rise in the past four sessions through Friday. The Topix index of all the Tokyo Stock Exchange First Section issues rose 10.25 points, or 1.2%, to 864.11, with 32 of 33 subindexes ending in positive territory.

Investors were active in snapping up exporters and laggards in the banking and real estate sector after U.S. data released Friday by the Institute of Supply Management showed the U.S. manufacturing sector expanded briskly in June.

Sentiment has not turned immediately bullish, but it seems the recent U.S. slowdown was a result of temporary factors such as disruptions in Japan's supply chain and higher gasoline prices," said Cosmo Securities strategist Toshikazu Horiuchi.

Honda Motor closed up 3.5% at Y3,220 and Kyocera gained 2.8% at Y8,380. The Wall Street Journal also reported that Honda sent a memo to dealers on Friday in which it said it believes production will ramp up in the fall, with monthly production exceeding 100,000 units in October, November and December.

During afternoon trading, solid gains in other Asian bourses helped the index briefly rise above the psychologically important 10,000 mark for the first time since May 2.

But some analysts remained skeptical that the gains will be sustainable, with caution still hanging in the air ahead of the release of the U.S. jobs data on Friday.

"With shares rising so much before the start of the U.S. and Japanese earnings season, it's uncertain how the market will react when the actual results come out," said Hisatsune Kobayashi, general manager at SMBC Nikko Securities.

Some of the gains were also trimmed after the euro fell against the yen on a warning from Standard & Poor's Ratings Services that a leading proposal for easing repayment terms on Greece's sovereign debt would amount to a default under the ratings firm's criteria.

Among individual shares, Bridgestone rose 2.8% to Y1,916 after the company announced Friday that it will raise the prices of new truck and bus tires sold in the Japanese replacement market by an average of 10 percent, starting September 1. Sumitomo Rubber Industries also closed up 2.3% at Y1,008.

Mitsui Fudosan closed up 4.2% at Y1,445 after Goldman Sachs raised its target price to Y1,700 from Y1,680 while saying real estate shares are nearing their bottom. Tokyo Tatemono rose 5.8% to Y311 on the house's upgrade to Buy from Sell.

Tokyo Electric Power climbed 20% to Y393 on buying by short-term speculators after Chief Cabinet Secretary Yukio Edano said Monday that he is not aware of an alleged series of secret meetings between government officials and the utility's chairman. The Mainichi Shimbun reported Sunday that they had secretly discussed the breakup of the company and the nationalization of its nuclear power business.

September Nikkei 225 futures closed up 110 points, or 1.1%, at 9960 on the Osaka Securities Exchange.

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