Nikkei logs longest run of weekly gains in 42 years
Japan’s Nikkei average jumped 2.9% on Friday to log an 11th straight week of gains, its longest such run since 1971, after a drop in the yen to a 2-1/2-year low against the dollar spurred exporters higher and fuelled optimism about earnings. The Nikkei 225 scored its biggest one-day gain in nearly two years to end at 10,926.65, its highest close in 32 months. “The Nikkei surged because of a softer yen following positive surprises in US data, especially the jobless claims,” said Hiroyuki Fukunaga, chief executive of Investrust. The yen tumbled to 90.695 to the dollar on Friday after new claims for US jobless benefits dropped to a five-year low last week, prompting investors to buy dollars. A senior Japanese official also spurred the yen’s decline by saying the government had no problem with the dollar hitting 100 yen. Japanese exporters, who benefit from a softer yen as it increases the value of earnings repatriated from overseas and boosts their international competitiveness, led the gains on Friday.
Edelweiss consolidated Q3 net jumps 56%
Edelweiss Financial Services reported a consolidated net profit of R46 crore in the third quarter, a 56% increase over the year-ago period when it netted R29-crore profit, driven by a huge increase in fees from its credit business during the period. Its subsidiary, Edelweiss Captial, posted net profit at R29.4 crore, up 12% from R26.3 a year ago. Total income grew 22.3% to R455 crore from R372 crore. Edelweiss Financial Services chairman and chief executive Rashesh Shah termed the numbers good and attributed it to business diversification strategy.
CLSA upgrades L&T to ‘outperform’ on govt policy
CLSA upgraded Larsen & Toubro to ‘outperform’ from ‘underperform’, saying favourable policies from the government and expected interest cuts would be reflected in the company's earnings by the second half of fiscal 2013/14. The upgrade came despite what the brokerage called ‘a mixed bag’ from October-December earnings, although with ‘more positives than negatives’, including a ‘creditable’ job in orderbook growth but weak operating performance.