Mitsubishi UFJ Surged 8.5% in Tokyo

Darlington Musarurwa
30 Nov, 2009
New York City

Mitsubishi UFJ plans to raise 1.1 trillion yen in share sale. Construction companies linked to Dubai and Middle East reversed their earlier losses to close higher after Dubai financial worries eased.

[R]5:00 AM New York, 7:00 PM Tokyo - Mitsubishi UFJ plans to raise 1.1 trillion yen in share sale. Construction companies linked to Dubai and Middle East reversed their earlier losses to close higher after Dubai financial worries eased.[/R]

The benchmark stock index rose in Japan spurred by financial stocks as concern over Dubai’s debt problem faded. Realty stocks also gained on renewed confidence in the market and construction stocks gained after the worries related to Dubai financial crisis eased.

Investors estimated that Dubai crisis is likely to be contained in the region and has less possibilities of spreading to other emerging markets in the world.

In Tokyo trading ASX 200 Index rose 2.9% or 264.03 to 9,345.55 and the broader Topix Index advanced 3.6% to 839.94.

In the first section of the Tokyo Stock Exchange 9.4 billion shares worth 546 billion yen were traded and in the second section 163 million shares valued at 1.8 billion shares changed hands.

Of the Nikkei 225 index stocks, 221 rose, 2 fell, and 2 were unchanged. Mizuho Financial Group led gainers in the index shares with a rise of 9.5% after worries over Dubai’s debt crisis eased.

Other financial stocks rose. Mizuho Trust & Banking jumped 6.8% to 79 yen and Daiwa Securities Group soared 5.9% to 465 yen.

BoJ to Do Utmost to Fight Deflation

Nikkei News reported that Bank of Japan Governor Masaaki Shirakawa said today in a speech to business leaders in Nagoya the central bank will do its utmost best to prevent price declines from compromising the country’s economic recovery.

Shirakawa noted the central bank will also monitor the movements in the yen.

According to the report, the economy is now picking up on rising exports and production, including soaring consumer spending.

“The economy has gotten out of a deteriorating phase, (but) the level of economic activity remains low and the pace of future recovery will not likely be smooth,” said Shirakawa.

MUFJ to Raise 1.1 trillion Yen in Share Sale

Mitsubishi UFJ Financial Group reported today it intends to raise 1.1 trillion yen through a share sale in order to boost its capital base.

Terms of the sale will be determined in the two days to December 16.

The lender will offer 2.17 billion shares to Japanese and local investors, while another 163 million will be reserved for additional demand.

Mitsubishi UFJ surged 8.6% to 482 yen.

Gainers & Losers

Mizuho Financial Group led gainers in the Nikkei 225 index stocks with a rise of 9.5% followed by increases in Sumitomo Realty of 9.1%, in Sumitomo Mitsui Financial Group of 8.8%, in Mitsubishi UFJ Financial Group of 8.6%, and Mitsui Fudosan of 8%.

Chiyoda Corp. led decliners in the Nikkei 225 index stocks with a fall of 2.2% followed by Yahoo Japan Corp. dropping 0.5%.

Construction companies linked to the Middle East region gained after Dubai worries eased.

Taisei increased 4.1% to 151 yen and Shimizu Corp increased 3.1% to 299 yen and Kajima gained 3.1% to 167 yen.