ID :
11969
Thu, 07/10/2008 - 10:09
Auther :
Shortlink :
https://oananews.org//node/11969
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Tokyo stocks rebound, gains modest amid reported Iran missile test
TOKYO, July 10 Kyodo - Tokyo stocks rebounded Wednesday from the previous day's sharp fall as investors took comfort from an overnight rebound on Wall Street, but early gains were trimmed by the U.S. dollar's depreciation following reported missile tests by Iran.
The 225-issue Nikkei Stock Average gained 19.03 points, or 0.15 percent, from Tuesday to 13,052.13. The broader Topix index of all First Section issues onthe Tokyo Stock Exchange was up 2.02 points, or 0.16 percent, to 1,285.53.
Gains were led by real estate, rubber product and banking issues. Majordecliners included mining as well as pulp and paper issues.
Brokers said the Tokyo market remained strong throughout the morning session, in a rebound from the generally bearish market undertone that had caused thekey Nikkei to decline in a 12-day losing streak through last Friday.
Investors were cheered up by the overnight rise in U.S. stocks, aided partly by a drop in New York crude oil futures, and by strong Japanese machinery ordersfor May, released shortly before the Tokyo market opened.
High-tech manufacturers such as Fanuc rose after the Cabinet Office said core orders rose a seasonally adjusted 10.4 percent in May from the previous monthagainst a market forecast of a 0.8 percent increase.
Fanuc advanced 90 yen, or nearly 1 percent, to 9,560 yen.
But the Nikkei shed most of its 230-point morning gain in the afternoon as the dollar weakened in the wake of media reports that Iran had fired long- andmedium-range missiles that could reach Israel, brokers said.
In addition to concerns over a firmer yen, a damper for Japanese exporters' earnings, market players feared that rising tensions between Iran and Israel or in the Middle East region could bring about a sharp rise in crude oil prices, further fueling global inflation concerns and hurting corporate profits andconsumer spending.
Investors were also unnerved by possible additional credit losses ahead of the upcoming April-June earnings reports from U.S. financial institutions, brokerssaid.
Yumi Nishimura, deputy general manager of the global product planning department at Daiwa Securities SMBC Co., said, ''While the market rebounded as investors were reassured by the Wall Street rally, there is still uncertainty (over more credit losses) by U.S. financial institutions.'' The Group of Eight summit also did little to uplift sentiment in Tokyo during its three-day run in Toyako, Hokkaido, through Wednesday, as market players had little expectation that the G-8 leaders would come up with specific measuresthat would immediately alleviate woes facing the financial markets.
Other gainers included value leader Mizuho Financial Group, which jumped 19,000 yen, or nearly 4 percent, to 512,000 yen, and Mitsubishi UFJ Financial Group,which advanced 21 yen, or over 2 percent, to 955 yen.
On the First Section, advancing issues outnumbered declining ones 793 to 781,with 145 others remaining unchanged.
Bucking the upward trend, Sapporo Holdings decreased 26 yen, or nearly 4 percent, to 688 yen, after U.S. hedge fund Steel Partners, the largest shareholder in Sapporo, expressed no confidence in the board of the brewer onTuesday.
Another notable decliner was Aeon, which shed 63 yen, or over 5 percent, to 1,171 yen, after the retail giant said Tuesday its March-May group operatingprofit fell about 20 percent.
Trading volume on the main section came to 1,966.61 million shares, up fromTuesday's 1,951.48 million.
Volume leader Urban, a condominium developer and sales agent, gained 18 yen, orover 9 percent, to 207 yen.
The TSE's Second Section index was up 2.18 points, or 0.08 percent, to 2,787.59 on a volume of 26.54 million shares. On the Osaka Securities Exchange, the near-term September Nikkei 225 index futures contract was up 120 points to13,120.
==Kyodo
The 225-issue Nikkei Stock Average gained 19.03 points, or 0.15 percent, from Tuesday to 13,052.13. The broader Topix index of all First Section issues onthe Tokyo Stock Exchange was up 2.02 points, or 0.16 percent, to 1,285.53.
Gains were led by real estate, rubber product and banking issues. Majordecliners included mining as well as pulp and paper issues.
Brokers said the Tokyo market remained strong throughout the morning session, in a rebound from the generally bearish market undertone that had caused thekey Nikkei to decline in a 12-day losing streak through last Friday.
Investors were cheered up by the overnight rise in U.S. stocks, aided partly by a drop in New York crude oil futures, and by strong Japanese machinery ordersfor May, released shortly before the Tokyo market opened.
High-tech manufacturers such as Fanuc rose after the Cabinet Office said core orders rose a seasonally adjusted 10.4 percent in May from the previous monthagainst a market forecast of a 0.8 percent increase.
Fanuc advanced 90 yen, or nearly 1 percent, to 9,560 yen.
But the Nikkei shed most of its 230-point morning gain in the afternoon as the dollar weakened in the wake of media reports that Iran had fired long- andmedium-range missiles that could reach Israel, brokers said.
In addition to concerns over a firmer yen, a damper for Japanese exporters' earnings, market players feared that rising tensions between Iran and Israel or in the Middle East region could bring about a sharp rise in crude oil prices, further fueling global inflation concerns and hurting corporate profits andconsumer spending.
Investors were also unnerved by possible additional credit losses ahead of the upcoming April-June earnings reports from U.S. financial institutions, brokerssaid.
Yumi Nishimura, deputy general manager of the global product planning department at Daiwa Securities SMBC Co., said, ''While the market rebounded as investors were reassured by the Wall Street rally, there is still uncertainty (over more credit losses) by U.S. financial institutions.'' The Group of Eight summit also did little to uplift sentiment in Tokyo during its three-day run in Toyako, Hokkaido, through Wednesday, as market players had little expectation that the G-8 leaders would come up with specific measuresthat would immediately alleviate woes facing the financial markets.
Other gainers included value leader Mizuho Financial Group, which jumped 19,000 yen, or nearly 4 percent, to 512,000 yen, and Mitsubishi UFJ Financial Group,which advanced 21 yen, or over 2 percent, to 955 yen.
On the First Section, advancing issues outnumbered declining ones 793 to 781,with 145 others remaining unchanged.
Bucking the upward trend, Sapporo Holdings decreased 26 yen, or nearly 4 percent, to 688 yen, after U.S. hedge fund Steel Partners, the largest shareholder in Sapporo, expressed no confidence in the board of the brewer onTuesday.
Another notable decliner was Aeon, which shed 63 yen, or over 5 percent, to 1,171 yen, after the retail giant said Tuesday its March-May group operatingprofit fell about 20 percent.
Trading volume on the main section came to 1,966.61 million shares, up fromTuesday's 1,951.48 million.
Volume leader Urban, a condominium developer and sales agent, gained 18 yen, orover 9 percent, to 207 yen.
The TSE's Second Section index was up 2.18 points, or 0.08 percent, to 2,787.59 on a volume of 26.54 million shares. On the Osaka Securities Exchange, the near-term September Nikkei 225 index futures contract was up 120 points to13,120.
==Kyodo
