Tokyo Stocks Up, Sumitomo Mitsui Loss

123jump.com Staff
10 Apr, 2009
New York City

Stocks in Tokyo closed higher in a listless trading. Banks declined after Sumitomo Mitsui reported its largest loss in six years and proposed to raise 800 billion yen in public offering. Ship liners gained on a rise freight rate index.

[R]11:00AM New York, 11:00PM Tokyo – Stocks in Tokyo closed higher in a listless trading. Banks declined after Sumitomo Mitsui reported its largest loss in six years and proposed to raise 800 billion yen in public offering. Ship liners gained on a rise freight rate index.[/R]

Stocks in Tokyo trading were volatile and traders lacked conviction with two leading indexes closing higher. Nikkei 225 Stock Average added 48.05 or 0.5% to close at 8,964.11 and Topix index added 4.16 or 0.5% to close at 845.97.

Investors focus on global economies and appear ready to take more risk as indexes closed higher for the fifth week in a row. For the week Nikkei 225 added 2.5% and Topix increased 1.8%.

Exporters gained but financials declined.

With the recent stabilization in financial markets and talks of support for global trade lifted the measure of freight rate in London trading. The Baltic Dry Index closed up 1% lifting stocks of shipping lines in Asia. Kawasaki Kisen Kaisha Ltd. added 6.1% to 400 yen and Mitsui O.S.K. Lines increased 6.6% to 580 yen.

The talks of global economies in the ‘bottoming out’ process also lifted exporters. Sony added 4.2% to 2,585 yen and Panasonic Corp increased 3.3% to 1,323 yen.

Isuzu jumped 12% to 155 yen after Morgan Stanley revised its outlook for sales in emerging markets and was first reported by Bloomberg news. The broker also lifted its rating on the truck maker on higher than expected sales in China and Indonesia.

Banks fell sharply after Sumitomo Mitsui reported largest loss in six years. The third largest bank reported a loss of 390 billion yen for the year ending in March and the company plans to raise 800 billion yen in stock offering. The stock dropped 14% to 3,110 yen.

Mizuho Financial Group Inc dropped nearly 10% to 198 yen on the news.

Gainers & Losers

Sumitomo Mitsui led decliners in Nikkei 225 Stock Average with a loss of 14% followed by losses in Mizuho Financial of 9.6%, in FAST Retailing of 7.6%, in UNY Company Limited of 7%, in J Front Retailing of 4% in Seven and I Holding of 4%.

Pioneer Corp led gainers in Nikkei 225 Stock Average with a surge of 27.4% followed by increase in Isuzu Motors of 12.3%, in Chuo Mitusi Trust of 9.9%, in CSK Holdings Corp of 8.4% and OKI Electric of 8%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 48.05 or 0.54% to 8,964.11. CSI 300 index in China higher 77.86 or 3.09% closed to 2,595.53. The KL Composite index in Malaysia higher 23.49 or 2.56% closed to 941.38. Markets of Hong Kong, Australia were closed today.