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Dec. 11, 2009, 10:43 a.m. EST

Japanese Stocks Rebound on Weaker Yen, Data from China

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By Ayai Tomisawa And V. Phani Kumar

Japanese shares rebounded strongly from three days of declines as the yen fell and data from China appeared to show that the economic recovery there is gaining momentum.

The Nikkei Stock Average of 225 companies climbed 2.5% to 10107.87. For the week, the Nikkei added 0.9%, and is up 8.2% for December.

The upbeat Chinese economic data gave a lift to construction-equipment manufacturers such as Komatsu /zigman2/quotes/204002437/delayed JP:6301 -1.10% , as well as other China-sensitive shares such as Kyocera and Honda Motor /zigman2/quotes/207173990/composite HMC -2.26% on hopes for improving product demand.

Komatsu rose 3.4%, 6305Hitachi Construction Machinery added 4.7%, Kyocera gained 5.4% and Honda rose 2.7%.

Exporters rebounded from recent losses as the yen retreated against the dollar. TDK /zigman2/quotes/208948266/delayed JP:6762 -0.69% surged 6.2%, Nissan Motor /zigman2/quotes/208298710/delayed JP:7201 +0.55% added 3.9%, and Toyota Motor /zigman2/quotes/200537742/composite TM +1.26% gained 2.7%.

The gains came ahead of next week's Tankan business sentiment survey by the Bank of Japan. "We look for a stronger than consensus reading on the Tankan survey and look for a strong improvement in the large manufacturers' business conditions," said Mitul Kotecha, head of global forex strategy at Calyon. "This will come as better news about recovery prospects and likely play positive for Japanese equities."

Sapporo Holdings /zigman2/quotes/200413497/delayed JP:2501 -6.25% rose 4.3% as investors welcomed the brewer's announcement that it will enter Vietnam's beer market by buying a 65% stake in Kronenbourg Vietnam for about $25 million.

Heavy industry and railway infrastructure-related stocks rose on a report that Vietnam will adopt Japanese "shinkansen" bullet-train technology for a high-speed railway connecting Hanoi and Ho Chi Minh City.

Nippon Sharyo, which makes train cars, jumped 9.8%, Kawasaki Heavy Industries /zigman2/quotes/206655821/delayed JP:7012 -1.04% gained 6.3% and Mitsubishi Heavy Industries /zigman2/quotes/202419396/delayed JP:7011 +1.04% rose 5.6%.

On the downside, Japan Airlines dropped 1% on a report the government won't fund loan guarantees to help the ailing carrier.

Mitsubishi UFJ Financial Group fell 1.5%, one trading session before the pricing window for its new equity share offer opens.

Most other Asia markets advanced less than 1%.

Despite the positive economic report, China's Shanghai Composite slipped 0.2% to XXX. Property stocks and banks declined on worries that Beijing plans to curb speculation in the property market. Beijing Huaye Realestate dropped 1.5% and Poly Real Estate Group /zigman2/quotes/201864015/delayed CN:600048 -0.82% fell 1%,

Jing Ulrich , head of China equities and commodities at J.P. Morgan, said that although the data indicated continued economic recovery, "a mild inflationary outlook and uncertainty in major export markets" would keep China from tightening its monetary policy in a hurry.

Write to Ayai Tomisawa at ayai.tomisawa@dowjones.com and V. Phani Kumar at phani.kumar@dowjones.com

/zigman2/quotes/204002437/delayed
JP : Japan: Tokyo
¥ 2,063.00
-23.00 -1.10%
Volume: 2.74M
Aug. 7, 2020 3:00p
P/E Ratio
15.90
Dividend Yield
1.75%
Market Cap
¥1948.83 billion
Rev. per Employee
¥45.51M
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/zigman2/quotes/207173990/composite
US : U.S.: NYSE
$ 24.67
-0.57 -2.26%
Volume: 1.45M
Aug. 7, 2020 4:00p
P/E Ratio
23.28
Dividend Yield
2.96%
Market Cap
$41.55 billion
Rev. per Employee
$661,808
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/zigman2/quotes/208948266/delayed
JP : Japan: Tokyo
¥ 11,540.00
-80.00 -0.69%
Volume: 771,900
Aug. 7, 2020 3:00p
P/E Ratio
26.39
Dividend Yield
1.39%
Market Cap
¥1457.76 billion
Rev. per Employee
¥13.41M
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/zigman2/quotes/208298710/delayed
JP : Japan: Tokyo
¥ 382.00
+2.10 +0.55%
Volume: 16.56M
Aug. 7, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥1494.80 billion
Rev. per Employee
¥85.36M
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/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 129.96
+1.62 +1.26%
Volume: 214,856
Aug. 7, 2020 4:00p
P/E Ratio
9.72
Dividend Yield
2.77%
Market Cap
$179.68 billion
Rev. per Employee
$737,463
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/zigman2/quotes/200413497/delayed
JP : Japan: Tokyo
¥ 1,771.00
-118.00 -6.25%
Volume: 1.07M
Aug. 7, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
2.37%
Market Cap
¥137.96 billion
Rev. per Employee
¥66.04M
loading...
/zigman2/quotes/206655821/delayed
JP : Japan: Tokyo
¥ 1,428.00
-15.00 -1.04%
Volume: 2.48M
Aug. 7, 2020 3:00p
P/E Ratio
15.76
Dividend Yield
0.00%
Market Cap
¥238.54 billion
Rev. per Employee
¥44.03M
loading...
/zigman2/quotes/202419396/delayed
JP : Japan: Tokyo
¥ 2,418.50
+25.00 +1.04%
Volume: 1.77M
Aug. 7, 2020 3:00p
P/E Ratio
63.74
Dividend Yield
3.10%
Market Cap
¥812.65 billion
Rev. per Employee
¥51.56M
loading...
/zigman2/quotes/201864015/delayed
CN : China: Shanghai
¥ 15.77
-0.13 -0.82%
Volume: 73.19M
Aug. 7, 2020 3:00p
P/E Ratio
6.71
Dividend Yield
5.20%
Market Cap
¥188.20 billion
Rev. per Employee
¥3.42M
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