5:00AM New York, 7:00PM Tokyo –A sustained rally in metals and oil lifted stocks of trading companies in Tokyo trading.

Stocks in Japan rallied led by a rise of 3% in copper prices, more than 2% increase in aluminum and zinc, and 2% gain in crude oil prices.

Market Sentiment

In Tokyo trading Nikkei 225 rose 0.9% or 122.5 to 13,757.91, and the broader Topix Index gained 0.9% or 1.90 to 1,332.99.

In the first section of the Tokyo Stock Exchange 9.5 billion shares valued at 1 trillion yen were traded and in the second section 406 million shares worth 4.6 billion yen changed hands.

Of the Nikkei 225 stocks 125 gained, 94 declined, and 6 were unchanged. Itochu Corp. led advancers in the Nikkei 225 stocks with a rise of 8.04% after Nikko Citigroup said the company’s shares were “strongly undervalued”.

Commodity Prices

Commodity stocks also gained after metal prices jumped to record highs. Copper prices rose for the third straight week on declining stockpiles and after the Customs office in Beijing said January imports to China rose 6.6% from December to 239,500 tones.

Copper prices for March delivery advanced 3.2% to $7,974 a ton in London yesterday.

Similarly, Aluminium for three months delivery also climbed by $5 to $2,825 a ton, while zinc and lead jumped 2.2% and 2% to $2,365 and $3,030 respectively.

Crude oil for March delivery also advanced 1% yesterday on reports Iran oil minister Gholamhossein Nozari said yesterday OPEC might cut output when it meets next month.


Government seeks BOJ successor

The Nikkei News online reported today that the Government will submit proposals of the possible successor to the incumbent BOJ Governor Toshihiko Fukui to the Diet next week. Fukui’s term will expire on March 19.

Rio Tinto to Secure Premium Iron Ore Prices

The Independent news online reported today that Rio Tinto Iron Ore president Sam Walsh said yesterday that the company will be negotiating for premium iron ore prices with Asian steelmakers to reflect freight costs that are less than half what it costs to move the commodity from Brazil.

Economists believe that prices will be near the top range reached between Asian steelmakers and CVRD.

Gainers and Losers

Itochu Corp. led advancers in the Nikkei 225 index shares with a rise of 8.04% followed by gains in Fuji Electric House of 6.46%, in Resona Holdings of 6.13%, in Trend Micro Inc. of 5.94%, in Nisshinbo Industries of 5.89%.

Itochu Corp gained after Nikko Citigroup said the company’s shares were undervalued.