Tokyo Office Vacancies Rise; Stocks Fall

123jump.com Staff
11 Dec, 2008
New York City

Office vacancies in central Tokyo rose as more financial and services companies lay people off in the district. Separately, stocks edged higher on the optimism that the U.S. will pass $14 billion auto bailout plan and support auto parts makers who also supply to Japanese car companies.

[R]5:00AM New York, 7:00PM Tokyo - Japan office vacancies rise 4.56% in November.

Stocks in Tokyo gained marginally after the U.S. House of Representatives passed the $14 billion auto rescue plan. The U.S. Senate is still debating the approval of the bill.

In Tokyo trading Nikkei 225 rose 0.7% or 60.31 to 8,720.55, and the broader Topix Index gained 1.8% or 14.70 to 849.25.

In the first section of the Tokyo Stock Exchange 22.4 billion shares worth 1.7 trillion yen were traded and in the second section 465 million shares valued at 3.5 billion yen changed hands.

Of the Nikkei 225 stocks 142 rose, 72 declined, and 11 were unchanged. JGC Corp. led advancers in the index shares with a rise of 11.7%.

U.S. House Pass $14 billion Auto Rescue Plan

The U.S. House of Representatives yesterday approved $14 billion rescue plan negotiated by White House and Congress Democrats on a 237-170 vote.

The deal could help save 200,000 auto-related jobs at General Motors, Ford and Chrysler plants.

If the Senate approves the bill, the plan will establish a new trustee appointed by the U.S. President with a mandate to force the industry to seek concessions from creditors, labor unions, dealers and shareholders.

The carmakers will have to submit a plan by March 31 that proves that three companies have reduced debts, cut jobs, lowered vendor payments and eliminate number of dealers.

Japan Office Vacancies Soar to 4.56% in November

Nikkei News reported today that real estate brokerage Miki Shoji Co. said office vacancies in central Tokyo rose 0.26 percentage points from the previous month to 4.56% at the end of November, increasing for the 10th consecutive month.

Ruling Party Seeks Tax-Free Capital Gains Exemption Up to 5 Million Yen

Separately, the Nikkei online edition reported that ruling party in the final draft of fiscal 2009 tax system reform guidelines is for tax exemption on capital gains and dividends on one million yen in annual stock investments per person and 5 million yen a year over five years beginning 2012.

Gainers & Losers

JGC Corp. led advancers in the Nikkei 225 index shares with a rise of 11.7% followed by increases in Tokai Carbon Co. of 11%, in Meidensha Corp. of 10.6%, in Sumitomo Mitsui Financial Group of 9.6%, and Mitsubishi Motors of 9.5%.

Sumitomo Mitsui rose after the company said it will sell preferred securities worth 582 billion yen. Shipping lines rose as well. Nippon Yusen soared 8.7% and Mitsui OSK Lines of 7.8%.

CSK Holdings Corp. led decliners in the Nikkei 225 index shares with a drop of 5.4% followed by losses in Trend Micro Inc. of 5.4%, in Terumo Corp. of 5.1%, in Comsys Holdings of 5%, and Mitsui Chemicals of 4.7%.

Sharp to Close Production Lines

Media reports in Japan suggested that it will close production lines at two plants in western Japan that manufacture liquid crystal display panels for mobile phones and personal computers.

Sumitomo to Sell to Raise 582 billion Yen

Sumitomo Mitsui Financial Group reported today that it will sell preferred securities worth 538.2 billion yen to domestic institutional investors in order to boost its capital base. The securities will be issued through a special purpose company in the Cayman Islands next week.