TOKYO: Japanese equities rose, with the Nikkei 225 Stock Average on course for its highest close in more than 18 years, as global shares rallied amid a rebound in commodity prices.
Sumitomo Metal Mining Co. jumped 4.2 per cent as copper prices rallied from a six-year low. Iron and steel producers led gains as iron-ore prices rebounded and after the Nikkei newspaper reported Nippon Steel & Sumitomo Metal Corp. would buy JFE Holdings Inc.’s stake in a Thai venture, sending shares of both companies more than 2.9 per cent higher. Dai-ichi Life Insurance Co. soared 4.5 per cent after quarterly net income jumped 68 per cent. Kyushu Electric Power Co. slumped 2.6 per cent ahead of Japan’s first restart of a nuclear power plant since the Fukushima meltdown four years ago.
The Nikkei 225 added 0.5 per cent to 20,908.02 as of 9:46 am in Tokyo, heading for its highest closing level since December 1996. The Topix index advanced 0.5 per cent to 1,698.95, on course for its highest close since July 2007. The Bloomberg Commodity Index on Monday jumped the most since February as U.S. oil advanced 2.5 per cent and copper rallied 2.6 per cent, sending U.S. stocks higher by the most since May.
“Japanese stocks are reacting to strength in U.S. and European shares, the weakness in bonds, and the rally in crude oil,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. “It’s possible that oil rebounded after the Chinese trade data led investors to assume the worst is behind them. The energy sector should stage a rebound today in Japan on higher oil prices.”
Crude on Monday climbed from its lowest settlement price in almost five months as Chinese oil imports rose to a record in July. Overseas purchases by China increased to 30.71 million metric tons in July, higher than December’s level of 30.4 million tons, a previous monthly record.
