Tokyo shares close higher on bargain hunting ahead of BoJ decision - UPDATE |
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Wed, 17 Jan 2007 08:17
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TOKYO (XFN-ASIA) - Share prices closed higher, coming off the morning's lows as investors emerged to buy on dips, with futures-led buying also providing support, dealers said.But they added that investors were largely playing it safe, with many taking a cautious stance ahead of the Bank of Japan's rate decision tomorrow at the end of its two-day policy meeting.The blue-chip Nikkei 225 Stock Average closed up 58.89 points or 0.34 pct at 17,261.35, off a high of 17,335.03.The TOPIX index of all issues listed on the Tokyo Stock Exchange's first section ended the session up 3.22 points or 0.19 pct at 1,706.76, off a high of 1,711.47.Gainers slightly outnumbered decliners 781 to 766, with 165 issues flat.Volume increased to 2.20 bln shares from 1.94 bln shares yesterday.SBI Securities strategist Hideyuki Suzuki said the market bounced back from its losses in the morning as investors emerged to buy on dips, with sentiment helped in part by brisk trading in futures.Dealers said the change in market expectation, which now leans toward the view that the BoJ is likely to keep its key rate unchanged tomorrow given mounting political pressure, may have helped to stabilize market sentiment.The Nihon Keizai Shimbun reported, without citing sources, that the BoJ policy board is leaning toward no action on rates at its two-day meeting that started today, with the nine policy board members opting to examine more data.'The market is expected to post gains after the BoJ's decision on interest rates, regardless of the result,' said Suzuki.'But in the long run, if it holds interest rates at current levels, the BoJ might also be seen by the market as having succumbed to political pressure,' he added.Shinsei Bank dropped 46 yen or 6.1 pct to 706 after issuing a profit warning yesterday, blaming new legislation which includes a move to cap interest rates on consumer loans by 2010.Other banks were mixed. Resona Holdings was up 2,000 yen or 0.6 pct at 338,000 and Sumitomo Mitsui Financial Group gained 10,000 or 0.8 pct to 1,270,000, but Mizuho Financial Group fell 2,000 or 0.2 pct to 898,000 and Mitsui Trust was 3 yen lower or 0.2 pct at 1,370.Steelmakers were higher. Nippon Steel Corp climbed 6 yen or 0.9 pct to 656, Kobe Steel was up 4 yen or 1.0 pct at 393, JEF Holdings advanced 80 or 1.4 pct to 5,930 and Tokyo Steel rose 49 or 3.0 pct to 1,720.Shipbuilding stocks were also firmer led by Hitachi Zosen, which rose 12 yen or 10 pct to 132 as Mitsubishi Heavy rose 9 or 1.6 pct to 554 and Kawasaki Heavy Industries climbed 11 or 2.5 pct to 449.(1 usd = 120.65 yen)kaori.kaneko@xfn.com
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Hong Kong shares open higher led by China financials; rebound ends 3-day fall 