Asia Pacific stocks were on a rally on Monday. Japan’s Nikkei 225 index climbed 2.25% after the release of Japan’s Machinery Orders for May. Australia’s ASX 200 index also increased ahead of the NAB Business Confidence for June. Hong Kong’s Hang Seng index as well as Chinese mainland stocks edged higher.
Japan’s Machinery Orders
The Nikkei 225 index edged higher after the release of better-than-expected machinery orders for May. The orders jumped 7.8% surpassing the estimated forecast. The machinery orders have been on an uptrend for three consecutive months.
Orders from manufacturers rose 2.8% in May. This was driven by electrical machinery boosted by demand for investments due to the global semiconductor supply shortage.
Orders from non-manufacturers were hovering near records high in May. They rose for the first time in six months. The orders went up 10.0% and were boosted by telecommunications as well as other non-manufacturers.
According to the Bank of Japan (BOJ), Japan’s wholesale prices surged 5.0% YoY in June. This indicated that global inflationary pressures are weighing on companies that are still affected by the coronavirus restrictions.
Core machinery orders excluding those for ships and electricity advanced 12.2% in May. It surpassed the estimated forecast for a 6.3% increase.
Nikkei 225 Movers
Robotics companies were among the best performers in the index. Fanuc Corp was the best performer in the Nikkei 225 index. The robotics company gained 6.17% in its stock earnings after the release of Japanese machinery orders for May. The company recently announced the production of 750,000 robots.
Yaskawa Electric Corporation gained 5.36% in its stock prices. The robotics company raised its annual operating profit forecast by 29%. According to the machinery orders for May, electronics companies were the best performers.
Showa Denko K.K was also among the best performers in the index. The chemical industry company gained 5.66%. The company had recently announced the division of the firm and transfer of energy storage and systems business.
On the flipside, Kawasaki Kisen Kisha led the drags in the Nikkei 225 index. The transport company slipped by more than 2%. The company had announced its participation in R&D and demonstration projects for CO2 a few weeks ago.