Japan's Nikkei Gains

Japan's Nikkei 225 Stock Average gained after crude oil posted the biggest decline in a month, reducing concern higher fuel costs will eat into companies' profit.

Isuzu Motors Ltd., the nation's largest maker of light-duty trucks, jumped to an eight-day high, while Canon Inc. extended its gain to a second day as the yen weakened. Mitsubishi Corp., which gets more than half its profit from commodities, sent trading companies lower.

The Nikkei climbed 26.31, or 0.2 percent, to 13,919.62 as of 9:55 a.m. The broader Topix index was little changed at 1,368.46. Fifteen of 33 industry groups on the Topix rose.

Crude tumbled 2.5 percent to $128.85 a barrel in New York yesterday. The biggest decline in the oil price since April 29 cut demand for gold as an inflation hedge, causing the precious metal to sink the most in a month.

Meanwhile, the yen depreciated against the dollar to as much as 104.35 in New York from 103.54 at the close of stock trading in Tokyo. A 1 yen change against the dollar alters Canon's annual operating profit by 9.9 billion yen ($95 million) and sales by 16.9 billion yen, the company said in a report on Jan. 30.

Isuzu climbed 1.9 percent to 530 yen, set for the highest since May 20. Mazda Motor Corp., Japan's fourth-largest automaker, added 2 percent to 470 yen. Canon, the world's biggest digital- camera maker, jumped 1.7 percent to 5,460 yen.


TradingEconomics.com, Bloomberg
5/27/2008 7:34:46 PM