Weak Tokyo Trading Volume

123jump.com Staff
27 Aug, 2007
New York City

Nikkei 225 in Tokyo climbed higher after losing most of the gains in the afternoon trading. New home sales report in the U.S. boosted stocks at the opening but lost most of the gains by the close on very weak trading volume. Yen weakend against dollar. Fukushiro Nukaga replaced the Finance Minister Koji Omi. Stocks in Asia rise after the new home sales report in the U.S. in nervous trading.

[R]7:00AM New York, 8:00PM Tokyo-Japanese shares rose on fresh economic growth prospects. New finance minister is appointed. Japan debt jumps to 836,521 billion yen. Mitsubishi UFJ units to buy Australia firm, Challenger Financial Services Group Ltd.[/R]

Japanese shares moved higher marginally after US reports indicated subprime mortgage market worries had not stopped home sales gaining 2.8% in July. At close Tokyo climbed 0.32% after early gains of over 1.5% with exporters leading. Of the 225 Nikkei index stocks, 109 gained, 94 dropped and 22 were unchanged. Ten stocks rose above 2% while bottom 30 dropped over 1%.

In Tokyo trading Nikkei 225 advanced 0.32% or 52.42 to 16,301.39 pushed firmer by motor, electric and energy stocks. Shares rose after July new home sales rose in the face of tightening credit market. The yen firmed marginally to 116.26 per one American dollar from 116.46 last week, as exporting firms bought. The Finance Ministry said Japan’s debt swelled to 836,521.3 billion yen in the period of June 30, up 2,143 billion yen at the end of March 31. Of the total, government bonds stood at 671,797.5 billion yen, down 2,324.6 billion yen from three months earlier.

Prime Minister Shinzo Abe announced Monday appointment of Fukushiro Nukaga, as new finance minister. The Financial Services Agency said today it’s intensifying monitoring high-risk bank investments to guard against losses in derivative and leveraged loans markets. Hedge and private investment funds will be closely monitored, the Agency said. Several key Japanese financial firms have invested large amounts of money into U.S. and European securities, in which a variety of securities using mortgages as collateral are incorporated.

Of the Nikkei 225 stocks, exporters, electric and energy and related shares rose. Japan Airlines led the gainers rising 4.74%, helped too by easing global oil prices. Nikon Corp followed gaining 4.45 % and NTT Docomo Inc up 3.51% while Yahoo Japan added 3.5%. Credit Saison rose 3.45%. Japan Tobacco, Honda Motor Co, Mitsumi Electrical, Tokyo Electron all rose over 2% against a firming yen. Of the stocks, G Yuasa Corp led decliners losing 3.04% followed by AEON Co Ltd down 2.84% and Mitsui $ Co fell 2.78%. Sojitz Corp and Nisshin Oil dropped 2.7% and 2.52% respectively.

Australian asset manager, Challenger Financial Services Group Ltd announced Monday Mitsubishi UFJ Ltd. and Mitsubishi UFJ Securities Co. subsidiaries to Mitsubishi UFJ will buy some 40 million Challenger shares at A$5.20. Bank of Tokyo has also been offered shares, as the Australian company seeks to spread influence in Asia. Mitsubishi UFJ shares closed unchanged at 1.3 million yen in Tokyo.

Japan Post said today some 26,000 ATMs would be de-activated by September 30 to pave way for privatisation, which commences October 1. All postal ATMs installed at post offices and other locations across Japan need to be suspended so as to confirm the amount of cash Japan Post holds on the last day as a public corporation, it said. ATMs operated by financial institutions and convenience stores tied up with Japan Post will not be affected.