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Japan stocks up after rate cut, US automaker loans
By TOMOKO A. HOSAKA,Associated Press Writer AP - Tuesday, December 23
TOKYO - Japanese stocks rose Monday, bolstered by authorities' recent recession-fighting steps and relief that ailing U.S. automakers managed to secure emergency government loans.
The benchmark Nikkei 225 stock average added 135.26 points, or 1.57 percent, to 8,723.78 _ its highest close in more than a month. The broader Topix index gained 1.71 percent to 848.72.
The Bank of Japan's interest rate cut Friday to 0.1 percent, as well as its new measures to aid corporate fundraising, gave financial issues a boost.
Deutsche Securities banking analyst Shin Tamura said that while the central bank's latest moves is unlikely to have a major direct impact on earnings or financial markets, they should help improve sentiment.
"That the government and the Bank of Japan continue to take steps to stabilize the markets and economy is likely to allay market concerns somewhat," Tamura said in a report.
Nomura Holdings Inc. surged 7.6 percent to 752 yen, Mizuho Financial Group Inc. closed up nearly 4 percent at 270,200 yen, and Mitsubishi UFJ Financial Group Inc. rose 2.9 percent to 576 yen.
Most automakers gained after the White House pledged on Friday to loan troubled automakers $17.4 billion, staving off bankruptcies that would have only deepened the recession in the world's largest economy. Japanese automakers have said that any failure among American rivals would also hurt them because that would threaten their mutual suppliers and could result in massive job losses that would weigh on consumer spending.
Honda Motor Co. rose 5.42 percent to 1,905 yen, and Nissan Motor Co. added 2.70 percent to 304 yen.
Japan's biggest automaker Toyota Motor Corp., however, fell 0.17 percent to 2,895 yen as investors braced for bad news at the company's year-end press conference in the afternoon.
Their concerns were confirmed after market close, when Toyota slashed its profit forecast for the fiscal year to barely breaking even at 50 billion yen ($555 million) _ a fraction of its 1.7 trillion yen net profit from the previous fiscal year through March 2008.
In currencies, the dollar gained slightly to 89.75 yen, while the euro climbed to $1.4068.
Markets in Japan will be closed Tuesday for the emperor's birthday.
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An office worker walks past an electric signboard updating stock indexes in Tokyo, Monday, Dec. 22, 2008. The benchmark Nikkei index rose 121.90 points, or 1.419 percent, to 8,710.42 points in the morning trading. (AP Photo/Katsumi Kasahara)
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