Japan Advances Despite Blackouts

Ivaylo
14 Aug, 2006
New York City

Japanese stocks gained Monday as clothing chain operator Fast Retailing and tire-maker Bridgestone pushed the market higher. Morning blackouts in Tokyo led to a shutdown of the Nikkei stock index but failed to dampen sentiment. Hong Kong and South Korea also finished higher. The Shanghai Composite bucked the trend and ended lower.

[R]7:30AM Japanese stocks advance on strong company reports despite blackout.[/R]
Asian markets were higher on Monday. The Nikkei 225 Average in Japan was up 1.45% to 15,790.82 at 1:25 p.m. Tokyo time when a computer error caused by the blackout caused the index to stop updating. By the time markets closed at 3 p.m., index calculations had not resumed. However, all component stocks continued trading as usual.

According to independent calculations, the Nikkei would have ended the day up about 1.9%. Fast Retailing Co, the operator of clothing chain Uniqlo, advanced 4.67%. Bridgestone Corp was up 4.59% after the Daiwa Institute of Research said it expects the company to return to strong profits next year despite weaker earnings recently due to high material costs.

Hong Kong''s Hang Seng Index finished the day up 0.23% to 17,290.01. Li Ka-shing''s Hutchison Whampoa rose 1.72% on local media reports, denied by the company, that it may list its retail businesses separately. South Korea''s Kospi Index was up 0.23% as exporters including Hyundai Motor and LG Electronics advanced. The country''s markets will be closed Tuesday for the Independence Day holiday.

Australia''s S&P/ASX 200 was up 0.45% despite a sharp drop by top telecom firm Telstra Corp.The Shanghai Composite Index, in China, ended down 2.2% on expectations the government would step up tightening measures after figures released Friday showed money supply grew by a faster than expected 18.4% in July.