Exporters Drive Tokyo Rally

123jump.com Staff
26 Mar, 2009
New York City

Stocks in Tokyo trading closed higher on a rally in export driven companies.Markets in Japan have rallied with the global markets rallying since hitting the low on March 9. Market indexes in Tokyo are up 22%. Morgan Stanley and Mitsubishi UFJ merge their brokerage operations.

[R]6:00 AM New York, 6:00 PM Tokyo – Stocks in Japan surged on the back of rally in New York and a rise in exporters in Tokyo trading.[/R]

The Nikkei 225 index gained 1.8% or 156.34 to 8,636.33 in Tokyo trading and Topix index added 1% or 8.32 to 826.81. The broader Topix index has gained for the ninth session in a row as string of economic data in the U.S. lifted the mood in trading.

Markets in Japan have rallied with the global markets rallying since hitting the low on March 9. Market indexes in U.S. and Europe have gained more than 20% and in Tokyo are up 22%.

Export driven companies gained in trading. Sony surged in the rally and recommendation from Merrill Lynch lifted the stock above 7%. Cannon Inc added 3.5%. Elpida Memory Inc surged its daily limit of 18% or 100 yen to 657 yen after it plans to raise capital through stocks sale or right issue.

Gainers & Losers

Of the benchmark index, 158 gained, 61 declined and 5 were unchanged.

Takeda Pharmaceuticals led decliners in the Nikkei 225 index with a rise of 4.7% followed by losses in Nippon Meat Packers Inc of 3.8%, in Tobu Railway Company of 3.2%, in Showa Denko KK of 3% and in Maruha Nichiro of 2.9%.

Sony led gainers in the Nikkei 225 index with a rise of 9.4% followed by gains in Fast Retailing of 8.3% in Sumco Corp of 8.2%, in Credit Saison Company of 7.8% and in Japan Steel Works of 6.9%.

The yen declined against euro and dollar. Against euro yen dipped 0.67% to 133.85 and against dollar decreased 0.9% to 98.57.

Morgan Stanley and Mitsubishi UFJ Merge Brokerage Business

The joint venture between the two brokerage units will create the third largest brokerage operation in Japan with Mitsubishi UFJ controlling 60% and Morgan Stanley holding rest of the share.

Nomura Holdings and Goldman Sachs are the two market leaders dominating in the merger advisory business.

Recently Nomura acquired to Asian operations of Lehman Brothers and Citigroup is looking to shed its brokerage unit Nikko Cordial and Nikko Asset Management.

Separately, Mitsubishi UFJ postponed its purchase of NikkoCiti Trust & Banking Corp for 25 billion yen to after April 1.