Tokyo stocks rise on final day, but suffer record loss of 42% in 2008+

TOKYO, Dec. 30 Kyodo - Tokyo stocks rose Tuesday in the year's final, half-day session on optimism over the impact of economic stimulus measures in 2009, but the key Nikkei index ended 2008 with its steepest one-year percentage drop of 42.1 percent as investor sentiment has been battered by a string of macroeconomic and corporate
woes.

The one-year loss, the sharpest since comparable data became available in 1949,
surpassed the previous record decline of 38.7 percent logged in 1990 when the
nation's asset-inflated bubble economy burst.
Due to the steep drop, exacerbated by the global financial turmoil stemming
from the U.S. subprime loan crisis, the market value of all shares on the First
Section of the Tokyo Stock Exchange totaled 278.99 trillion yen as of Tuesday,
down by 196.64 trillion yen from the end of last year, equivalent to about 40
percent of the nation's gross domestic product.
On Tuesday, the 225-issue Nikkei Stock Average advanced 112.39 points, or 1.28
percent, from Monday to 8,859.56, recovering the 8,800 level for the first time
since Nov. 11 on a closing basis.
The broader Topix index of all First Section issues on the TSE was up 4.47
points, or 0.52 percent, to 859.24.
Both indexes rose for a fourth consecutive trading day, but wrapped up the year
sharply lower than they ended the previous year.
Japan's stock markets were open only for a half-day session Tuesday.
Gainers were led by mining, rubber product and precision machinery issues.
Major decliners included insurance, forestry and fishery, and real estate
issues.
''The expectations for policies from next year onwards remain strong,'' said
Kazuhiro Takahashi, general manager of the global product planning department
at Daiwa Securities SMBC Co., referring to economy-boosting measures by key
economies including Japan and the United States.
Many market players believe the measures, already unveiled in the latter part
of 2008, and further actions to be carried out by the new U.S. administration
of Barack Obama, will lift market sentiment.
Tokyo stocks were also buoyed Tuesday by buying of oil and resource-related
shares due to the rise of the benchmark crude oil futures price in New York
above $40 per barrel Monday, brokers said. Crude oil prices surged as a result
of growing geopolitical concerns following Israel's airstrikes on the
Hamas-ruled Gaza Strip.
Inpex jumped 34,000 yen, or over 5 percent, to 698,000 yen, and trading house
Mitsubishi gained 34 yen, or nearly 3 percent, to 1,238 yen.
On the First Section, advancing issues outnumbered declining issues 1,152 to
425, with 116 others finishing unchanged.
But whether the rise in stocks signals a long-term trend remains uncertain as
the Tokyo market continues to face macroeconomic and corporate worries.
''Sluggishness in the real economy has been factored in to a certain extent,
but I do not know when such woes will bottom out,'' said Hiroichi Nishi,
equities chief at Nikko Cordial Securities Inc.
Nishi said there are other factors that could drag down Tokyo stocks such as
concern over deflation and the political confusion in Japan next year with
uncertainty over whether a snap general election will be held.
Lingering worries about the outlook for the Japanese and U.S. auto industries,
especially in the wake of the uncertain fate of the ailing U.S. automakers,
dampened some auto issues like Toyota Motor, which fell 30 yen, or over 1
percent, to 2,905 yen.
A notable decliner was Yoshinoya Holdings, which dropped 3,900 yen, or over 3
percent, to 107,200 yen, after the restaurant chain operator said Monday it
booked a group net loss of 839 million yen in the first three quarters of the
current business year, a reversal from a profit of 1.55 billion yen a year
earlier.
Trading volume on the main section came to 853.97 million shares, up from
Monday morning's 575.61 million.
Battery maker GS Yuasa, the session's value and volume leader, lost 8 yen, or
over 1 percent, to 535 yen on selling to lock in profits. Investors have been
snapping up battery and environment-related shares anticipating that they will
be strong next year as the environment is expected to take center stage under
the Obama administration.
The TSE's Second Section index was up 9.11 points, or 0.47 percent, to 1,939.10
on a volume of 17.40 million shares. On the Osaka Securities Exchange, the
near-term March Nikkei 225 index futures contract was up 80 points to 8,830.
The Nikkei hit its highest closing level of 2008 -- 14,691.41 -- on Jan. 4, the
first trading day of the year. Tokyo equities weakened after the Bear Stearns
Cos. shock in March and were hit further by Lehman Brothers Holdings Inc.'s
collapse in September.
On Oct. 27, the Nikkei hit 7,162.90 -- its lowest closing level in 26 years,
ending the day down more than 6 percent partly due to steep falls in Japan's
banking shares. The day after, on Oct. 28, the Nikkei fell below the 7,000 line
for the first time in 26 years on an intraday basis.
==Kyodo
2008-12-30 21:54:01