Japan Stocks Rally On, With Sharp Up On Hon Hai Deal Report

MarketWatch Pulse

Japanese stocks came bopping higher in early Monday moves, with the Nikkei Stock Average rising 0.9% to its latest 15-year-high, as a positive lead from the U.S. and some premarket foreign buying helped the market advance despite a stronger yen. The Topix rose 0.7%, while Dow Jones Newswires reported that offshore accounts at the foreign brokerages it monitors were net buyers for a third straight session. The gains came despite the dollar softening to �119.98, almost a full yen lower than the �120.90 level seen when Tokyo stocks last traded. Among the closely watched blue-chip tech names, Sony Corp. rose 1.5%, Toshiba Corp. and Hitachi Ltd. each added 1%, and Rohm Co. rose 2.3%. Sharp Corp. outperformed with a 4.2% rally after a Nikkei news report Friday said Taiwan's Hon Hai Precision Industry Co. was looking to buy a stake in the Japanese electronics company after a failed deal in 2012. Retailers were more of a mixed picture, with J. Front Retailing Co. down 0.8%, Fast Retailing Co. flat, and Aeon Co. up 1.3%, even as the Nikkei reported Aeon would miss its fiscal-year profit projections, with pretax earnings expected to fall 15%. Shares of Japan Airlines Co. rose 1.4%, coinciding with yet another Nikkei report, this one quoting JAL's president as saying the carrier may soon start direct service between Tokyo and Dallas.

Copyright © 2015 MarketWatch, Inc.

Continue Reading Below