Japan Stocks Indicate Lower; Weak Banks

123jump.com Staff
24 Sep, 2009
New York City

Stocks in Japan closed higher ahead of G-20 meeting in the U.S. Japan Airlines may need to raise $2.5 billion in the next six months. Sony surged after it announced that it may cut prices of its popular game console. Nomura declined on its plan to raise $5.6 billion.

[R]7:00 AM Tokyo – Stocks in Japan closed higher ahead of G-20 meeting in the U.S. Japan Airlines may need to raise $2.5 billion in the next six months. Sony surged after it announced that it may cut prices of its popular game console. Nomura declined on its plan to raise $5.6 billion. Mizuho falls on the loan delay proposal.[/R]

As the leaders of G-20 nations meet world markets declined on weak home sales in the U.S. Silver and copper and crude oil fell more than 4%.

Stocks in Japan on Thursday closed higher but were weak in the rest of Asia. Investors are worried that the recent global stimulus may not sustain the economic recovery.

The Nikkei 225 Index in Tokyo closed higher 173.68 or 1.67% to 10,544.22 and broader Topix index increased 1.2% to 950.20.

Gainers & Losers

Fast Retailing increased 5.3% to 11,140 yen after Goldman Sachs revised the company rating to “buy” from “neutral.”

JFE Holdings Inc increased 1.5% to 3,430 yen and Nippon Steel added 0.3% to 353 yen after metal prices hovered near recent highs.

Japan Airlines Corp, the struggling airline may need to raise capital in a short period of time. The airline may need to raise 150 billion yen in the next two months and may need additional 100 billion yen by the end of the first quarter next year. The news was reported in Nikkei English News.

Mizuho fell 5.2% to 184 yen, Sumitomo Mitsui Financial Group Inc declined 3.8% to 3,300 yen and Mitsubishi UFJ increased 1.9% to 539 yen. Chiba Bank Ltd increased 0.9% to 551 yen.

Yomiuri newspaper reported that Financial Services Minister is looking to ask banks and individuals to delay loan payments. The recently elected government ran on the election platform that government should cut spending and provide direct subsidies to consumers.

Nomura Holdings Inc ((NMR)) declined 13.5% to $6.63 after the company is preparing to raise as 511 billion yen ($5.6 billion) according to media reports in Tokyo.

Sony Corp ((SNE)) increased 3.1% to 2,670 yen after the company plans to lower game console PlayStation prices by 15% in Japan from next month. The company lowered 25% prices in Europe and U.S. by 25% according to the comments by Kazuo Hirari, head of the company business unit and reported by Bloomberg.

Nikkei 200 Average Movers

Japan Airlines Corporation led the decliners in the Nikkei 225 index of 16.3% followed by losses in Mizuho Financial Group, Inc. of 4.6%, in Taiheiyo Cement Corporation of 3.9 %, in Sumitomo Mitsui Financial Group, Inc of 3.7% and in Sanyo Electric Co., Ltd. of 3.6%.

Hino Motors, Ltd. led gainers in the Nikkei 225 index with a rise of 7.6% followed by gains Kao Corporation of 7.3%, in Tokyo Electron Limited of 5.7% and in Fast Retailing Co., Ltd. of 5.2%.

The Nikkei 225 Index in Tokyo closed higher 173.68 or 1.67% to 10,544.22, Hang Seng index in Hong Kong decreased 544.79 or 2.52% to 21,050.73 and CSI 300 index in China higher 20.86 or 0.68% to 3,080.93. ASX 200 index in Australia decreased 32.90 or 0.69% to 4,701.20. The FTSE Bursa KL Composite index in Malaysia was lower 1.01 or 0.08% to 1218.06.

The Kospi Index in South Korea decreased 17.59 or 1.03% to close at 1,693.88. SET index in Thailand closed lower 1.98 or 0.27% to 728.54. JSE Index in Indonesia increased 11.92 or 0.48% to 2,468.90.The Sensex index in India increased 61.93 or 0.37% to 16,781.43.