Asian Markets Surge, Tokyo Up 1.2%

123jump.com Staff
02 Oct, 2007
New York City

Stocks in Asia closed at record levels led by a sharp rise in indexes in Hong Kong, Australia, Philippines, Taiwan, and Japan. Tokyo closed up 1.2% on reboundig banks and financial stocks. Yen traded at elevated levels as traders returned to carry trade arbitrage. Of the 225 stocks in Nikkei index, 171 closed higher. Sony forms a joint venture for consumer electronics chips with Qimonda. Hong Kong surges to 4% and retail sales in August soar 15%.

[R]6:00AM New York, 7:00PM Tokyo – Stocks in Asia jumped to record highs. Tokyo added 1.2% on strength in banks, brokerage, and metals stocks.[/R]

Japan’s stock indexes rallied 1.19% boosted by financial stocks on speculation global credit markets were on the mend.

In Tokyo trading Nikkei 225 added 1.19% or 200.83 to 17,046.78, nearly two month high. Of the Nikkei 225 stocks 171 advanced, 45 slipped and 7 traded unchanged. Mitsubishi UFJ Financial Group led gainers with a surge of 5.59%, followed by Adventist Corp, rising 5.04%. Other financial stocks gained as well. Mizuho Financial Group edged up 2.64% and Sumitomo Mitsui climbed 3.86%.

U.S. stocks rallied on write downs in bond portfolio by Citigroup and UBS. Citigroup wrote off $5.9 billion in bond portfolio and UBS booked a loss of $3.4 billion in mortgage related businesses. U.S. stocks jumped after the two big banks offered insights into the extent of losses and hinted that worst may soon be over.

Metal prices also rallied, with zinc and copper increasing 1.6% and 1.1% respectively. Nippon Light Metals rising 1.95%, Mitsui Mining and Smelting Company soaring 1.83% and Sumitomo Metal Industries jumping 1.68%.

The yen bucked the downtrend against the dollar, trading at 115.33 per dollar from 115.74.

Of the Nikkei 225 index stocks, Mitsubishi UFJ Financial Group led the advancers with a rise of 5.6%, followed by increases of 5.1% in Advantest Corporation, 4.96% in Nomura Holdings, 4.70% in Clarion Company Limited, and 4.44% in Sumitomo Trust.

Mazda soared 0.84% on news the company has developed a catalyst to cut the use of expensive metals by 90% while maintaining performance. It however maintained outlook for a net loss of 15 billion yen because of high taxes.

Kikkoman Corp led the decliners with a sharp fall of 7.92%, followed by losses in IHI Corporation of 6.05%, of 3.93 in Mitsubishi UFJ Nicos. Fuji Electric Company and Ajinomoto Company Inc shed 3.65% each.

Qimonda Ag announced today it would be partnering Sony Corp to form a joint venture company Qreatic Design to develop DRAM chips electronics including camera, televisions and other consumer electronics. Sony and Qimonda will own equal stakes in the venture that is expected to begin operations by end of year. Qimonda Ag is 86% owned by Infineon Technologies AG. Elpida, largest DRAM chip maker in Japan, fell 150 yen to close at 3,940 after the news of the joint venture. However, chip equipment makers Advantest added 180 yen to 3,750 and Tokyo Electron added 4.3% to 7,560 yen.

According to Matsushita Electric Industrial Co spokesman Akira Kadota the company will triple annual capacity at the No.2 factory in Hyogo, western Japan to 6.6 million plasma panels from the 2.2 million units currently produced to meet demand.

The company also said it sold 17 distribution centers last month to Pro Logis, the world’s largest publicly traded industrial developer, for 85 billion yen.

In other Asian markets trading Hong Kong, Australia, and Korea closed at record highs. Australia rose 1.3% to 6,667.60, Hong Kong increased 3.9% to 28,199.75 and Korea edged 2.6% higher to 2,014.09. Taiwan jumped 1.4% to 9,623.25.