Japanese Stocks Gain on Bank-Bailout, Restructuring Optimism
Japanese stocks edged higher on speculation a bank-rescue plan in the U.S. will ease credit- market turmoil, and as Nissan Motor Corp.’s job cuts raised optimism company restructuring efforts will stem losses.
Nomura Holdings Inc., the nation’s largest brokerage, rallied from a 14 percent plunge yesterday, adding 3.1 percent, ahead of the U.S. Treasury’s unveiling of a new bailout package. Nissan, Japan’s No. 3 automaker, jumped 7.3 percent after saying it will reduce 20,000 jobs in an effort to return to profit. Orix Corp., Japan’s biggest non-bank financial company, lost 9.5 percent after cutting its profit target.
The Nikkei 225 Stock Average climbed 24.91, or 0.3 percent, to 7,993.94 as of 12:34 p.m. in Tokyo, paring a 2 percent gain. The broader Topix index rose 2.76, or 0.4 percent, to 781.66. The Standard & Poor’s 500 Index fluctuated most of the session in New York yesterday as investors awaited details on the White House’s financial-rescue package.
“There are expectations in the market the U.S. plan to separate non-performing assets from banks’ balance sheets will turn around the current situation,” said Hiroshi Morikawa, a senior strategist at MU Investments Co., which manages about $14 billion. “Financial shares may shoot up, depending on the plan’s details, but people are wary about betting on either direction.”