Japan Stocks Fall 2 %, Battered By Yen

Tokyo: Japanese stocks fell 2 per cent on Friday as the yen advanced against the dollar, battering exporters such as Honda Motor Corp, with growing worries about the U.S. economy also weighing on prices.

Mizuho Financial Group and other financials also slipped after U.S. Federal Reserve Chairman Ben Bernanke warned that small banks that had invested heavily in real estate could collapse, renewing fears about a credit squeeze.

"This will have an impact in terms of credit worries but, even more, it reflects growing concern about the worsening U.S. economy," said Yutaka Miura, senior technical analyst at Shinko Securities.

"But for Tokyo, the real worry is the yen's rising against the dollar, which is going to make things really tough."

Bernanke said on Thursday that small banks that invested heavily in real estate could collapse as the housing downturn drains their capital, raising the fear of more capital write-offs in general.

These fears were fed after American International Group Inc posted its biggest-ever quarterly loss on Thursday, hurt by a write-down of derivatives exposed to bad mortgage investments.

As of 0038 GMT the benchmark Nikkei was down 2.1 per cent, shedding 296.06 points to 13,629.45. The broader TOPIX was also down 2.1 per cent at 1,324.46.

Exporters were hit hard by the dollar's fall against the yen to 104.65 yen by midmorning in Tokyo. Honda was down 3.6 per cent at 3,240 yen, Canon Inc fell 3 per cent to 4,780 yen and Toyota Motor Corp was off 2.7 per cent at 5,750 yen. Financials also slipped, with Mitsubishi UFJ Financial Group down 3 per cent at 956 yen and Mizuho down 2.9 per cent at 462,000 yen. Millea Holdings Inc, Japan's largest non-life insurer, was down 2.7 per cent at 3,880 yen.

Japan Stocks Gain Ground On Soft Yen, Fed Cut Eyed

TOKYO: Japanese stocks gained nearly 2 per cent on Tuesday, with exporters such as Canon Inc in favour due to a softer yen while banks gained after their US counterparts rose on hopes for another rate cut by the Federal Reserve. Shares of Victor Co of Japan (JVC) and Funai Electric Co Ltd jumped after an industry source said the consumer electronics makers plan to form an alliance to jointly develop and supply LCD television sets.

"This is simply a rebound, though a softer yen is helping. The Japanese market has recently been moving entirely in response to external factors," said Masaru Hamasaki, a senior strategist at Toyota Asset Management. "The situation in America is likely to improve, helped by stimulus measures for the economy. Even so, Japanese stocks are unlikely advance on their own due to a cool investor attitude toward the market."

A Fed policy meeting ends on Wednesday, with markets expecting a further 50 basis point rate cut. The US central bank slashed its key rate by 0.75 per cent to 3.5 per cent in an emergency step on Jan. 22 after recession fears prompted a plunge in US stocks. The benchmark Nikkei average ended the morning session up 1.8 per cent or 241.16 points at 13,329.07 after shedding 4 per cent on Monday.

The broader TOPIX index added 1.9 per cent or 24.65 points to 1,317.68. The dollar hovered around 107.00 yen after rising to 107.14 yen in earlier trade. All three major US stock indexes gained more than 1 per cent on Monday, with the Dow Jones industrial average ending up 1.45 per cent. Hamasaki also said investors are closely watching President George W. Bush's State of the Union address at 0200 GMT, but they expect few surprises.

"In the long run, Americans can be confident about our economic growth," Bush will say, according to excerpts of his speech released in advance by the White House.

Exporters rebound

Shares of Japanese exporters drove higher as a weaker yen boosts profits when earnings from abroad are brought home. Canon rose 2.8 per cent to 4,750 yen, Sony Corp climbed 2.3 per cent to 4,990 yen and Honda Motor Co Ltd gained 2.6 per cent to 3,220 yen.

Bank shares including industry leader Mitsubishi UFJ Financial Group also climbed, tracking gains in US counterparts that rose after more weak housing data bolstered expectations for a Fed rate cut. Shares of Mitsubishi UFJ shot up 4.9 per cent to 1,033 yen, No.2 bank Mizuho Financial Group rose 3.9 per cent to 508,000 yen and Sumitomo Mitsui Financial Group, the third-biggest, added 3.6 per cent to 828,000 yen.

Shares of JVC jumped 5.3 per cent to 180 yen and Funai Electric rose 5.9 per cent to 4,110 yen. Trade was light on the Tokyo exchange's first section, with 917.2 million shares changing hands, compared with last week's morning average of 1.1 billion. Advancing stocks outnumbered decliners by a ratio of more than four to one.

Japan Nikkei Extends Gains, Now Up 3%

TOKYO: Japan's benchmark Nikkei average extended gains on Friday, jumping more than 3 per cent as banks rose after news that troubled US bond insurer Ambac may be in talks with a buyer.

The weaker yen boosted exporters such Nissan Motor Corp and other blue-chip exporters, while a Wall Street rebound after a US tax rebate plan was announced gave investors confidence to buy across the board.

At 0334 GMT the Nikkei was up 3.3 per cent at 13,518.07 and the broader TOPIX up 3.8 per cent at 1,333.09.