Japan's Investors Take Stock; Nikkei Rises Despite Year-End Selling by Pensions Funds
Michele Yamada. Wall Street Journal. (Eastern edition). New York, N.Y.: Feb 13, 2004. pg. C.14
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Abstract (Document Summary)
In HONG KONG, the Hang Seng Index rose 0.7%, or 100.37 points, to 13625.13. Property stocks
fell after David Eldon, the chairman of the Hongkong & Shanghai Banking Corp., Hong Kong's
largest bank, said he was concerned property prices in the territory may be rising too quickly.
Henderson Land fell HK$0.40, or 1.0%, to HK$39.40, Cheung Kong Holdings fell HK$0.25, or
0.3%, to HK$74, and Sun Hung Kai Properties fell HK$0.50, or 0.7%, to HK$76.25.
MSCI Indexes % CHG FEB 11 FEB 10 FROM 12/03 U.S. .................... 1086.8 1075.5 +4.0 Britain
................. 1325.1 1327.6 -1.7 Canada .................. 1090.7 1088.7 +7.0 Japan ................... 625.6
625.6 -1.8 France .................. 1206.4 1203.5 +3.5 Germany ................. 512.3 511.0 +4.1 Hong
Kong ............... 7101.6 7123.3 +12.0 Switzerland ............. 765.8 765.6 +7.2 Australia ...............
654.1 650.4 -0.2 World Index ............. 1076.3 1069.8 +3.9 EAFE MSCI ............... 1336.8 1336.0
+3.7 As calculated by Morgan Stanley Capital International Perspective, Geneva. Each index,
calculated in local currencies, is based on the close of 1969 equaling 100.
Full Text (731 words)
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Dow Jones Newswires
Tokyo -- JAPANESE STOCKS rose nearly 1% following a one-day holiday, despite a steady
stream of selling from Japanese pension funds dumping their stock holdings before the end of the
fiscal year.
The Nikkei 225 Stock Average rose 93.86 points, or 0.9%, to 10459.26 after a 37.21-point fall
Tuesday. Markets were closed Wednesday for a public holiday.
Investors snapped up shares in the banking sector, as well as domestic-orientated issues with
strong earnings outlooks and defensive stocks such as pharmaceuticals. Many remained wary of
buying export- reliant issues such as Ricoh, Toyota and Advantest amid the continued dollar
weakness against the yen.
Among domestic-oriented stocks, Japan Tobacco rose 4.3% to 770,000 yen as the market
welcomed progress in cost-cutting measures announced Monday.
With few fresh positive trading cues, many investors expect the Nikkei to trade between 10000 and
11000 until the end of March, when the Japanese government's fiscal year ends. The Nikkei ended
Friday's morning session up 32.22 points, or 0.3%, at 10491.48.
"With many Japanese pension funds still selling their securities holdings, the next focus is whether
trust banks -- taking sell orders from pension funds -- become net buyers of Japan stocks after the
end of this fiscal year," said a trader at a local brokerage house.
Shares of big telecommunications companies were mildly lower Thursday, with NTT DoCoMo
sliding 0.9% to 219,000 yen, KDDI off 0.7% to 556,000 yen and Vodafone Holdings down 0.8% to
250,000 yen.
High-technology favorite Canon shed 1.6% to 5,010 yen. Hoya, another popular stock, fell 1.2% to
9,910 yen.
Chip makers were mostly lower. NEC Electronics fell 3.7% to 6,540 yen in Tokyo, while Rohm
shed 0.7% to 11,870 yen in Osaka. Chip testing-equipment maker Advantest fell 1.4% to 7,830
yen, but Toshiba rose 2.4% to 434 yen.
Among the most-active shares by volume, Ube Industries fell 13% to 167 yen, after chemicals
maker lowered its full-year operating profit forecast to 17 billion yen from 25 billion yen, because of
a deteriorating aluminum-wheels business, a fall in cement demand and rising coal prices. Both
Goldman Sachs and HSBC cut their ratings on the firm.
Japanese megabank shares supported the index. Many big Japanese banks are on track to report
strong earnings this fiscal year. Traders also chose to look on the bright side of a recent report that
financial regulators will inspect lending records of UFJ Holding's core bank, saying it may indicate
a further clean-up of the banks' balance sheet. UFJ Holdings jumped 4.6% to 475,000 yen, while
Mitsubishi Tokyo Financial Group rose 3.6% to 815,000 yen.
Other Market Activity
Overall, the Dow Jones World Stock Index rose 0.21%, or 0.41, to 195.48. Excluding the U.S., the
index rose 0.99%, or 1.49, to 152.6.
In HONG KONG, the Hang Seng Index rose 0.7%, or 100.37 points, to 13625.13. Property stocks
fell after David Eldon, the chairman of the Hongkong & Shanghai Banking Corp., Hong Kong's
largest bank, said he was concerned property prices in the territory may be rising too quickly.
Henderson Land fell HK$0.40, or 1.0%, to HK$39.40, Cheung Kong Holdings fell HK$0.25, or
0.3%, to HK$74, and Sun Hung Kai Properties fell HK$0.50, or 0.7%, to HK$76.25.
In LONDON, the FTSE 100 Index fell 0.4%, or 18.3 points, to 4377.7. Telecommunications
concern BT Group posted third-quarter results that showed a second successive quarterly decline
in revenue, but provided evidence its strategy of growing "new wave" revenue is working. BT
shares fell 1% to 174.75 pence. Unilever rose 2.6% to 547 pence after posting a 38% rise in 2003
net profit, aided by success in its five- year cost-cutting program, and said it would consider an
acquisition if an opportunity arose.
In PARIS, the CAC 40 Index rose 0.1%, or 3.71 points, to 3681.56. France Telecom shares rose
3.3% to 23.33 euros after the company said it swung to a net profit for 2003.
MSCI Indexes
% CHG
FEB 11 FEB 10 FROM 12/03
U.S. .................... 1086.8 1075.5 +4.0
Britain ................. 1325.1 1327.6 -1.7
Canada .................. 1090.7 1088.7 +7.0
Japan ................... 625.6 625.6 -1.8
France .................. 1206.4 1203.5 +3.5
Germany ................. 512.3 511.0 +4.1
Hong Kong ............... 7101.6 7123.3 +12.0
Switzerland ............. 765.8 765.6 +7.2
Australia ............... 654.1 650.4 -0.2
World Index ............. 1076.3 1069.8 +3.9
EAFE MSCI ............... 1336.8 1336.0 +3.7
As calculated by Morgan Stanley Capital International Perspective, Geneva.
Each index, calculated in local currencies, is based on the close of 1969
equaling 100.