Japanese shares end up 1.21%

Japanese shares end up 1.21%
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First Published: Wed, Sep 17 2008. 12 45 PM IST
Updated: Wed, Sep 17 2008. 12 45 PM IST
AFP
Tokyo: Japanese share prices closed up 1.21% on Wednesday, climbing back from a sharp drop the previous day as a US bailout of insurer AIG eased concerns about the global financial system, dealers said.
But the market lost some of its early gains as concerns re-emerged about the health of the US and domestic economies following the collapse of US investment giant Lehman Brothers.
The Bank of Japan has pumped ¥5.5 trillion ($51.6 billion) into the money markets since Tuesday, hoping to provide investors with enough cash as Wall Street undergoes a major restructuring.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index — which had plunged a day earlier to a more than three-year low — closed up 140.07 points at 11,749.79. The Nikkei paired early gains, ending the morning session up more than 2%.
The broader Topix index of all first-section shares rose a more modest 3.86 points or 0.35% to 1,121.43.
Bailout package
The US Federal Reserve said it was offering an $85 billion loan to ailing American International Group and — in an unprecedented intervention in a private company — the US government would take nearly 80% of the insurer’s stake.
Dealers said however deep concerns remained.
“It would be reasonable for investors to think that if a huge institution like AIG is suffering this much, there must be many other smaller firms that have yet to reveal their problems,” Akira Ishida, head of the equities department at Chuo Securities, told Dow Jones Newswires.
Insurers gained, with Sompo Japan Insurance up 2.1% at ¥867 and Tokio Marine Holdings jumping 5.3% to ¥3,400.
Banking stocks ended mixed. Mitsubishi UFJ Financial Group rose one percent to ¥800, while Mizuho Financial Group lost 0.7% to ¥415,000.
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First Published: Wed, Sep 17 2008. 12 45 PM IST
More Topics: Stocks | Japan | Nikkei | Topix | Wall Street |