Mitsui O.S.K. Lines Ltd., operator of Japan's largest fleet of iron-ore ships, surged the most in 21 years in Tokyo trading as Asian shipping lines rallied on a gain in commodity prices.
Mitsui O.S.K. rose 18 percent to 526 yen in Tokyo trading today. China Cosco Holdings Co., the world's largest operator of dry-bulk ships, jumped 41 percent in Hong Kong, the most since its share debut in 2005.
Crude oil for December delivery climbed 7.6 percent to $67.50 a barrel in New York yesterday, the steepest jump in a month. Mitsui O.S.K. earlier this week reported a 30 percent increase in second-quarter net income and Kawasaki Kisen Kaisha Ltd., Japan's third-largest shipping line, had a 62 percent profit increase in the quarter.
The shares are cheap compared with their earnings,'' said Osuke Itazaki, an analyst in Tokyo at Credit Suisse Group. Investors have already factored in more than the worst case scenario for their profits.''
Mitsui O.S.K. is priced at 3.1 times estimated earnings for the business year ending March 31 and Kawasaki Kisen is at 3.7.
Itazaki recommends investors buy Mitsui O.S.K. shares, which have fallen 63 percent this year, and Kawasaki Kisen stock, which is down 61 percent this year.
Nippon Yusen K.K., Japan's largest shipping line by sales, increased 14 percent to 515 yen. Kawasaki Kisen advanced 20 percent, the most in five years, to 423 yen in Tokyo.
Hanjin Shipping Co., South Korea's largest sea-cargo carrier, gained 15 percent to 14,450 won in Seoul trading.
Orient Overseas (International) Ltd. jumped 19 percent to HK$13.30 and Pacific Basin Shipping Ltd. rose 29 percent to HK$4.05 in Hong Kong. China Shipping Development Co. surged 36 percent to HK$7.06.
Mitsui O.S.K. rose 18 percent to 526 yen in Tokyo trading today. China Cosco Holdings Co., the world's largest operator of dry-bulk ships, jumped 41 percent in Hong Kong, the most since its share debut in 2005.
Crude oil for December delivery climbed 7.6 percent to $67.50 a barrel in New York yesterday, the steepest jump in a month. Mitsui O.S.K. earlier this week reported a 30 percent increase in second-quarter net income and Kawasaki Kisen Kaisha Ltd., Japan's third-largest shipping line, had a 62 percent profit increase in the quarter.
The shares are cheap compared with their earnings,'' said Osuke Itazaki, an analyst in Tokyo at Credit Suisse Group. Investors have already factored in more than the worst case scenario for their profits.''
Mitsui O.S.K. is priced at 3.1 times estimated earnings for the business year ending March 31 and Kawasaki Kisen is at 3.7.
Itazaki recommends investors buy Mitsui O.S.K. shares, which have fallen 63 percent this year, and Kawasaki Kisen stock, which is down 61 percent this year.
Nippon Yusen K.K., Japan's largest shipping line by sales, increased 14 percent to 515 yen. Kawasaki Kisen advanced 20 percent, the most in five years, to 423 yen in Tokyo.
Hanjin Shipping Co., South Korea's largest sea-cargo carrier, gained 15 percent to 14,450 won in Seoul trading.
Orient Overseas (International) Ltd. jumped 19 percent to HK$13.30 and Pacific Basin Shipping Ltd. rose 29 percent to HK$4.05 in Hong Kong. China Shipping Development Co. surged 36 percent to HK$7.06.