2014.07.2202:56:12UTC+00Japanese stock rise post-holiday on exports and steel

Japanese stocks rose in the opening of today’s trade, fresh from a national holiday with exporters and steelmakers lifting up the benchmark index.

The Topix Index advanced by 0.6% to 1,270.78, 9:31 am, Tokyo time. 29 of the 33 industry groups of the index climbed The Nikkei 225 Stock Average added 0.6% as well to 15,311.05. The Nikkei is recovering from a July 18 plummet where it had the biggest loss in three weeks.

Tokyo Steel Manufacturing Co. and Nintendo Co. jumped 12% and 2.6% respectively with the former increasing its profit target beyond the estimates of analysts and the latter got its equity rating upgraded by Morgan Stanley. Chiba Bank Ltd. and Honda Motor Co. are up by 2.9% and 0.6% respectively as the former vowed to purchase its shares back.

Chief strategist at SMBC Friend Securities, Toshihiko Matsuno, commented that he expect the market to reclaim its losses from the latter part of last week due to geopolitical tensions, and then fluctuate in a narrow range. Matsuno added that the the effects of the imposition of sanctions against Russia is still not clear yet but so far it seems that it doesn’t have a major impact on the global economy, however, expect the market to be tight until further development occurs.

For the year up to July 18, the Topix Index has already lost 3% but it has cut what is supposed to be 16%. The gauge has a difficult battle ahead if its to match last year’s 51% surge due to the Japanese central banks easing of monetary policies for inflation to incite.

The MSCI World Index lost 0.2% in the previous trading session with the lingering effect of last week’s tragic incident over Ukraine that has piqued extreme reactions from across the globe. Eurozone’s prime minister will meet up today to discuss further sanctions to be imposed against Russia.