Connect with us

Business

Nikkei climbs to three-month high

Published

on

TOKYO  – Japanese shares hit a three-month high on Monday morning after a solid U.S. May jobs report provided the latest confirmation of slow but steady improvement in the world’s largest economy and its labor market.

The benchmark Nikkei gained 0.5 percent to 15,156.32 by the midday break, after rising as high as 15,206.57, a level last seen on March 11. The index has gained about 445 points, or more than three percent, over the past five trading days.

“Japan remains the best and most leveraged play on the U.S.-led upturn in global growth that we expect to continue for the next few years,” wrote Trevor Greetham, director of asset allocation at Fidelity Worldwide Investment on the company’s official blog.

On Monday, Japan revised up its growth number for the first quarter, which grew an annualized 6.7 percent, compared with the initial 5.9 percent reading. Analysts said the upward revision didn’t boost the Nikkei as it was in line with expectations.

The Nikkei’s steep gains in the past week raised concerns that the market may be overbought in the very near term, and some investors were selling into the rally.

The Topix’s 14-day relative strength index rose above 70 and the up-down ratio, the ratio of the number of shares that rose over the past 25 sessions divided by that of falling shares, was well above 120, both seen as indicating an overbought zone.

Wall Street closed at all-time highs on Friday after figures showed that U.S. employers kept up a solid pace of hiring in May, returning employment to pre-recession level and offering confirmation the economy has snapped back from a winter slump.

“The U.S. jobs data was strong but came in very much as expected,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management.

“The Tokyo market merely followed the movement of U.S. markets. Given that we are hovering in the overbought levels already and there is no real catalysts domestically, it would be difficult to drive the momentum further.”

But investors seem relatively bullish on the market, rotating into high beta shares – those with high volatility — from defensive shares.

Sea transporters, real estate companies and warehouse and port operators advanced between 0.8 percent and 1.3 percent.

Mitsui O.S.K. Lines Ltd and Sumitomo Realty & Development Co Ltd climbed 1.8 percent and 1.9 percent, respectively.

“On the whole, investors are cautiously optimistic. They are likely to keep rotating to high beta shares,” said Yasuo Sakuma, portfolio manager at Bayview Asset Management.

Komatsu Ltd rose 1.9 percent and Hitachi Construction Machinery Co Ltd jumped 2.6 percent, helped by growing expectations that the Chinese economy is stabilizing after a slowdown, with hefty gains in recent sessions in rival Caterpillar also boosting sentiment.

By midday, the broader Topix added 0.3 percent to 1,238.28 in moderate trade, with trading volume at 36.2 percent of full daily average for the past 90 days.

The new JPX-Nikkei Index 400 advanced 0.3 percent to 11,277.19.

– REUTERS

Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Business

Tesla Aims for 2028 Commercial Production of Flying Car

Published

on

Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

Continue Reading

Business

Marketers Eye Portion of FG’s Petrol Discount

Published

on

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.

It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.

The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.

READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.

According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.

He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.

“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.

He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.

“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.

Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.

“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.

Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.

Continue Reading

Business

Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

Published

on

In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.

It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.

“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x