Nikkei in Japan Rebounds 2%

123jump.com Staff
17 Jan, 2008
New York City

Stocks in Japan rebounded after four days of decline. Nikkei 225 index increased 2% or 278.94 to 13,783 and Topix index added 27.21 to 1,329.58. property stocks rallied on the hopes that housing industry will rebound in January. Exporters advanced after yen fell to 105.90. Sony Corporation rose 2.72%, Toyota Motor soared 3%, and Honda Motor Corporation climbed 3.90%. Retail stocks declined after the Bank of Japan said that the consumer sentiment is on the decline.

[R]5:00AM New York, 7:00PM Tokyo - Tokyo rebounds 2.07% after four days of decline.[/R]

Stocks in Japan gained on bargain hunting after the Nikkei 225 index fell below 14,000.

In Tokyo trading Nikkei 225 reversed a four day 7.5% slump to close up 2.07% or 278.94 to 13,783, while the broader Topix Index soared 27.21 to 1,329.58.

In the first section of the Tokyo Stock Exchange 11.7 billion shares valued at 1.3 trillion yen changed hands and in the second section 365.8 million shares worth 4.2 billion yen were traded.

Of the Nikkei 225 stocks 184 gained, 35 declined, and 6 were unchanged.

Kyodo news online reported today that the Bank of Japan said yesterday in its quarterly survey an increasing number of consumers are losing confidence in the economy as wage increases fail to rise with the inflation.

The U.S. Federal Reserve Board said yesterday in a statement it had sanctioned Japanese online bank eBank Corporation’s application to set up a office in San Francisco.

The company will explore development of technology for Internet banking and invest in the U.S.

Bloomberg news reported today that according to Morgan Stanley prices the risk of Japanese companies defaulting on their debt rose to a record today. The Markit iTraxx Japan Series 8 Index rose by 2 basis points to 56.5 basis points.

Kyodo news also reported today that Nippon Paper Group President Masatomo Nakamura said he will resign after paper and pulp makers said they used less than the required volume of recycled paper in its products since 1992.

Of the Nikkei 225 index shares Shimizu Corporation led advancers with a rise of 8.8% followed by rises in Sumco Corporation of 8.48%, in Fanuc Limited of 8.43%, in Sekusui House of 8.30%, and in Taisei Corporation of 7.96%.

Realty stocks gained on Nikkei news reports that January construction data will show indications for a rebound in housing market. Mitsubishi Estate Company rose 6.99% and Mitsui Fudosan jumped 6.23%.

Exporters advanced after yen weakened to 107.12 from 105.92 yesterday against the dollar. Sony Corporation rose 2.72%, Toyota Motor Corporation soared 3.01% and Honda Motor Corporation climbed 3.87%.

Sharp gained after Goldman Sachs increased its recommendation on the stock to “buy” from “hold” on expectations that the demand for flat display panels will increase.

The company has also agreed to sell 700,000 display panels this year to high–definition TV maker Syntax-Brillian.

J Front Retailing led declining Nikkei 225 stocks with a drop of 5.15% followed by losses in Kao Corporation of 4.97%, in Daiichi Sankyo of 3.94%, in Toyota Tsuho of 3.63%, and in Daiwa Securities Group of 2.93%.

Retail stocks declined after the Bank of Japan said the consumer confidence in the economy had plummeted.

Paper and pulp companies fell after Nippon Paper Group President Masatomo Nakamura said he will resign. Nippon Paper Group shed 2.93%, Hokuetsu slumped 1.93%, and Oji Paper Group declined 1.80%.

The Japan Times reported today All Nippon Airways Company will hike regional airfares by 9% or 2,100 yen on average starting on April 1 to cover rising fuel costs.

Government is considering raising the price of wheat sold to domestic floor millers by 30% from April. Yamazaki Baking fell sharply after the talks of price hike.

In Tokyo Nikkei 225 Index closed higher 278.94 or 2.07% to 13,783.45, in Hong Kong Hang Seng index increased 664.13 or 2.72% closed to 25,114.98, in Australia ASX 200 index lower 13.60 or 0.23% to close 5,796.10.

In South Korea Kospi Index increased 18.58 or 1.09% to close at 1,723.55, in Thailand SET index closed higher 17.45 or 2.26% to 791.25, and Indonesia JSE Index edged increased 56.97 or 2.20% to 2,649.28. Sensex index in India decreased 167.29 or 0.84% to 19,700.82.