WORLD> Asia-Pacific
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WORLD> Asia-Pacific
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Japanese stocks rally after big Wall Street gains
(Agencies)
Updated: 2008-11-25 16:08 TOKYO -- Japanese shares surged Tuesday as investors returning from a national holiday were cheered by Wall Street's optimism over a US government bailout of Citigroup.
The benchmark Nikkei 225 stock average surged 413.14 points, or 5.22 percent, to 8,323.93 on hopes for a thaw in credit markets. The broader Topix index rose 3.60 percent to 831.58. The rise gave Japanese stocks their second straight session of gains, following a strong performance on Friday when the Nikkei climbed 2.7 percent. Markets were closed Monday for a national holiday. Still, Japanese stocks are unlikely to sustain their momentum, said Toshikazu Horiuchi, equity strategist for Cosmo Securities in Tokyo. "The US has come out with different measures, and that certainly has reduced downside risks for the market," he said. "But the economy is only going to get worse, and that will limit the upside." The Dow Jones industrial average shot up 4.9 percent to 8,443.39 on Monday. Shares there were buoyed by news the US government had decided to invest $20 billion in Citigroup and guarantee $306 billion in risky assets. Economy Minister Kaoru Yosano called the plan a "courageous decision" to save the massive global banking group, noting that the world's economy could be affected by Citigroup's fate, according to Kyodo news agency. Every sector posted gains, with financial and real estate issues leading the way. All three of Japan's megabanks climbed. Sumitomo Mitsui Financial Group Inc. soared 11.48 percent to 340,000 yen, Mizuho Financial Group Inc. added 9.17 percent to 247,700 yen, and Mitsubishi UFJ Financial Group Inc. closed up 2.85 percent at 506 yen. Sumitomo Realty & Development Co. jumped 13 percent to 1,304 yen. Among a handful of losers, shares of consumer electronics maker Sanyo Electric Co. fell 2.5 percent to 156 yen on speculation that Panasonic Corp. plans to offer a lower price than expected in its takeover bid for the company. The Nikkei financial daily reported Monday that Pansonic will offer 120 yen per share, below stakeholder Goldman Sachs' hopes for at least 250 yen per Sanyo share. Panasonic said in a statement Tuesday that the media reports were not based on any information released by the company. In currencies, the dollar was trading at 96.43 yen Tuesday afternoon in Asia from 96.88 late Monday. The euro stood at $1.2860 from $1.2925. |
