Tokyo Stocks Rise 1.1%

123jump.com Staff
15 Aug, 2008
New York City

Stocks in Japan rose fractionally and for the week added 1.1%. The cost of non-performing loans disposal rose by 70% at the end of the quarter in June. Shipping companies rebounded for the second day in a row after the freight rate index closed higher. The index had fallen 40% from its peak in May and climbed 6% for the week. Chipmakers rallied on the speculation that Seagate Technology Inc may be interested in SanDisk Corp.

[R]5:00AM New York, 7:00PM Tokyo - Nikkei falls 1.1% for the week.[/R]

Stocks in Japan rose marginally led by chipmakers and shipping lines as the Baltic Dry Index rebounded after a decline for a month.

Market Sentiment

In Tokyo trading Nikkei 225 rose 0.5% or 62.61 to 13,091.41, falling 1.1% for the week, and the broader Topix Index edged up 0.7% or 8.38 to 1,247.31, slumping 1% for the week.

In the first section of the Tokyo Stock Exchange 8.8 billion shares worth 655 billion yen were traded and in the second section 205 million shares valued at 2.4 billion yen changed hands.

Of the Nikkei 225 stocks 132 increased, 80 dropped, and 13 were unchanged. Mitsui Sumitomo Insurance Group led advancers in the index shares with a rise of 5.71% followed by Kawasaki Kisen increasing 4.93% after the Baltic Dry Index rose 4.6% yesterday.

Seagate Linked to SanDisk Corp

An American trade journal EE Times reported yesterday that Seagate Technology Inc. is interested in buying all or part of SanDisk Corp. Some market watchers dismissed the speculation and others noted that Seagate is only interested in SanDisk''s solid-state disk (SSD) unit.

The report noted Seagate has a keen interest in flash technology and is a supplier of hard drives, but views SSDs as a potential threat to its traditional business.

Disposal of Non-Performing Loans Costs Rises 70% in the Quarter to June

The Nikkei News reported on its Web site today that major and regional banks have seen the costs related to non-performing loans rise 70% from a year ago for the three months ended June.

Gainers & Losers

Mitsui Sumitomo Insurance Group led advancers in the Nikkei 225 index shares with a rise of 5.71% followed by gains in Kawasaki Kisen of 4.93%, in Showa Denko K.K. of 4.32%, in Sumitomo Realty of 3.82%, and Nikon Corp. of 3.75%.

Kawasaki Kisen and other shipping lines increased as the Baltic Dry Index, which is a measure of freight charges for raw material, rose 4.6% yesterday. Nippon Yusen spiked 3.09%, Mitsui OSK Lines gained 2.80%, and Hitachi Zosen soared 2.61%.

Chipmakers rallied on a report by EE Times that Seagate Technology Inc. is interested in buying all or part of SanDisk Corp. Canon jumped 2.33% and Sony Corp. climbed 2.17% as a result.

OKI Electric Industries led decliners in the Nikkei 225 index shares with a fall of 7.98% followed by losses in Kumagai Gumi of 6.35%, in Mitsubishi Materials of 4.52%, in Shionogi & Co of 4.30%, and Sumitomo Osaka of 3.74%

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 62.61 or 0.48% to 13,019.41, Hang Seng index in Hong Kong decreased 232.13 or 1.09% closed to 21,160.58. ASX 200 index in Australia increased 0.60 or 0.01% to close 4,981.70. The KL Composite index in Malaysia decreased 14.38 or 1.30% closed to 1,095.05.

SET index in Thailand closed higher 1.88 or 0.27% to 707.48 and JSE Index in Indonesia decreased 21.49 or 1.02% to 2,085.15. Market of South Korea and India were closed today.