Stocks in Tokyo Surge 5%

123jump.com Staff
27 Jan, 2009
New York City

Japan launches emergency aid for struggling companies. Coca-Cola seeks 50% stake in Kikkoman Corp. but the Japanese company is still not sure how much stake it plans to sell. International tourist arrivals dropped sharply in December. Japanese tourist traveling to foreign destinations declined too.

[R]5:00AM New York, 7:00PM Tokyo- Japan launches emergency aid for struggling companies. Coca-Cola seeks 50% stake in Kikkoman Corp. International tourist arrivals dropped sharply in December.[/R]

Japan stocks rose sharply after the government announced emergency aid for cash-strapped companies operating in developed countries.

Commodity stocks advanced after a rally in metal prices. Financial stocks also gained.

In Tokyo trading Nikkei 225 index rose 4.9% or 378.93 to 8, 061.07, and the broader Topix Index 4.8% or 37.21 to 805.49.

In then first section of the Tokyo Stock Exchange 9 billion shares worth 584 billion yen were traded and in the second section 82 million shares valued at 957 million yen changed hands.

Of the Nikkei 225 index stocks, 219 gained, 4 declined, and 2 were unchanged. Toho Zinc led gainers in the index shares with a rise of 13% as metal prices advanced. Gold prices jumped $13 to $910 per ounce.

Government Aid Program

Kyodo News reported that the Japanese government today launched an emergency aid program for cash strapped companies that are operating in other developed countries.

The Japan Bank for International Cooperation (JBIC), which fall under Japan Finance Corp., will provide loans to the troubled Japanese firms overseas.

The lender also said it will extend loans up to five years long together with other financial institutions, and cover up to 70% of the total loan.

According to the report, the finance ministry said companies that are currently operating in 22 industrialized countries, including the United States, Britain and Iceland, will be newly eligible to receive loans and debt guarantees from a government-linked lender.

The scheme will be applicable to companies of all sizes that have been finding it increasingly difficult to secure funding since September last year.

Earlier, JBIC has been extending similar support to units operating in developing countries.

Finance minister Shoichi Nakagawa said, ""JBIC has basically offered support to small businesses or those operating in developing countries. But gigantic Japanese firms such as automakers will also be entitled to this emergency aid.""

Foreign Tourist Arrivals Fall 24.1% in December

Japan National Tourism Organization reported today that the number of foreign tourists visiting Japan declined 24.1% to 513,700 in December from a year ago.

However tourists visiting Japan gained 0.1% in the year to 8,351,600 from a year ago on a steep rise in the yen and a deteriorating global economy.

The JNTO said arrivals plunged the most in the second half of the year, falling 8.8%.

Tourists from South Korea declined 8.4% to 2,382,600 from a year ago, while visitors from the U.K. declined 7% and U.S. fell 5.8% respectively.

However, tourists from Hong Kong increased 27.3% to 550,200 and those from China edged up 6.2% to 1,000,700.

Japanese travelers abroad fell 7.6% to 15,987,000.

Gainers & Losers

Toho Zinc led gainers in the Nikkei 225 index shares with a rise of 13.8% followed by gains in Chuo Mitsui Trust of 12.9%, in NGK Insulators of 12.6%, in Mitsubishi Materials of 12.5%, and Nippon Sheet Glass of 11.9%.

Other commodity stocks rose as gold prices rallied $13 to $910 per ounce. Copper prices also increased. Sumitomo Metal Mining soared 1.2%, and Pac Metals increased 11.1%.

Financial stocks advanced. Mizuho Financial Group jumped 11.7% and Shinsei Bank climbed 10.9%.

Ebara Corp. led decliners in the Nikkei 225 index shares followed by losses in Taiyo Yuden Co. of 5.6%, in Nippon Paper Group of 1.7%, and Yamaha Corp. of 0.5%.
Company News

Coca Cola Seeking 50% in Kikkoman Corp.

Kikkoman Corp. reported yesterday that U.S. company Coca-Cola Co. is seeking 50% in unlisted Kikkoman subsidiary Tone Coca-Cola Bottling Co.

The company wants to purchase the stake by the end of March and will initiate talks with Kikkoman.

However the Japanese firm is yet to determine how much it will sell to Coca-Cola.

Nomura Loss tops 492 billion yen

Nomura Holdings reported today that it has realized a group net loss of 492 billion yen in the nine months through December from a profit of 86 billion yen in the same period a year ago.