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Japan stocks rise, mood lifted on UBS capital boost

Japan stocks rise, mood lifted on UBS capital boost
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First Published: Tue, Dec 11 2007. 10 37 AM IST
Updated: Tue, Dec 11 2007. 10 37 AM IST
Reuters
Tokyo: Japanese stocks rose on Tuesday, 11 December, after fund injections into Swiss bank UBS helped ease concerns over the global financial crisis, sending Mitsubishi UFJ Financial Group Inc higher.
Exporters like Sony Corp were also traded higher as the dollar gained against the yen.
Yet investors still found ample reasons to hold off ahead of a slew of economic events, topped by a US Federal Reserve interest rate decision later in the day.
“The market will definitely welcome a 50 basis point cut. If the cut is 25 basis points, the market’s reaction will depend on the Fed’s statement accompanying the decision,” said Hitoshi Yamamoto, CEO of Fortis Asset Management Japan.
News of cash infusions into US bond insurer MBIA Inc and UBS were taken as votes of confidence in the financial sector and boosted Wall Street along with rate cut expectations, helping financial shares in Tokyo as well.
Mitsubishi UFJ Financial Group rose 1.5% to 1,238 yen and Sumitomo Mitsui Financial Group Inc gained 1.3% to 966,000 yen. Mizuho Financial Group Inc added 0.2% to 638,000 yen.
“The UBS news is big. It brought home anew the power of oil money and sent an assuring message that there is enough money out there and the financial world is in no danger of falling into a crisis,” Fortis’ Yamamoto said.
As of 0436 GMT, the benchmark Nikkei rose 0.5% to 16,012.89. The broader Topix gained 0.6% to 1,567.37.
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First Published: Tue, Dec 11 2007. 10 37 AM IST
More Topics: Japan | Stocks | Nikkei | Topix | UBS |