Tokyo stocks edge down on bad loan worries
markets.ft.com
By Ken Hijino in Tokyo
Published: January 9 2002 01:13 | Last Updated: January 9 2002 08:38
Renewed pessimism in the banking sector drove Tokyo stocks lower on Wednesday, outweighing patchy gains in the rest of the market.
The Nikkei 225 average fell 31.62, or 0.3 per cent, to 10,663.98, while the broader Topix fell 6.76, or 0.66 per cent, to 1,025.01. A total of 772m shares exchanged hands as 564 shares rose and 772 shares fell.
Jitters over banks' bad loan problem were rekindled after local media reported that the main creditor banks of Daiei, the struggling supermarket operator, was considering to forgive some of Daiei's massive debts.
UFJ Holdings, one of Daiei's main creditors, fell 2.9 per cent to Y302,000. Sumitomo Mitsui Banking Corporation,another lender, fell 1.1 per cent to Y559.
Other banks were also lower as speculation mounted that banks would continue to prop up their ailing borrowers. Mizuho Holdings fell 3.1 per cent to Y281,000 and Mitsubishi Tokyo Financial Group lost 2.1 per cent to Y847,000.
Daiei, however, surged 40 per cent to Y105 on hopes that its creditors will continue to assist Japan's second-largest retailer to restructure its operations and ease its crushing debts.
Meanwhile Fast Retailing, an operator of the Uniqlo brand clothes store, tumbled 15.9 per cent after the company sharply lowered its earnings forecast for the full year.
Among gainers, automotive makers and other exporters advanced on the back of the weakening yen which had fallen to a three-year low against the dollar on Tuesday.
Toyota rose 1.8 per cent to Y3,490 and Nissan jumped 4.6 per cent to Y 730.Canon gained 3.3 per cent to Y4,770 and Sony rose 0.5 per cent to Y6,390. |
