Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: borb who wrote (3340)	5/18/2003 8:46:57 PM
From: Elmer	Respond to of 3902

If Mitsubishi Tokyo Financial doesn't decline on this news, I'm loading up. quote.yahoo.co.jp Japanese Stocks Decline; Resona Lead Banks Lower After Bailout Tokyo, May 19 (Bloomberg) -- Japanese stocks slid after the government said it will bail out Resona Holdings Inc., the nation's fifth-largest bank, fueling concern other lenders may need taxpayer funds. ``It is not a surprise and other city banks are expected to fail unless the economy recovers,'' said Edwin Merner, who overseas $600 million in assets as president of Atlantis Investment Research Corp. in Tokyo. The government should ``fix the economy and many of the financial problems will take care of themselves.'' Some exporters such as Kyocera Corp. dropped as the yen's three-week, 4.1 percent advance against the dollar threatened to reduce the value of their overseas sales. U.S. Treasury Secretary John Snow said over the weekend the dollar's recent slide is ``fairly modest.'' The Nikkei 225 Stock Average fell 19.28, or 0.2 percent to 8098.01 as of 9:24 a.m. in Tokyo. The Topix index shed 2.99, or 0.4 percent, to 816.18, with banks the index's biggest decliners. Nikkei futures for June delivery fell 0.1 percent to 8100 in Osaka and shed 0.4 percent to 8095 in Singapore. Resona plunged 10 yen, or 17 percent, to 48, triggering declines in other bank shares on concern that others will ask for a taxpayer bailout. The government announced Saturday that it would bail out Resona after the bank said a $7.2 billion ($62 million) loss, larger than it expected, cut its capital below the minimum set by regulators. No Bank `Close to Collapse' Resona asked for public funds at a time when the government said no major bank is close to collapse. The government didn't say how much it would provide Resona. The Nihon Keizai newspaper said the bank had asked for 2 trillion yen ($17.2 billion.) Among Japan's biggest banks, Sumitomo Mitsui Financial Group Inc., the nation's second-largest bank, slumped 6,000 yen, or 3 percent, to 197,000. UFJ Holdings Inc., Japan's fourth-largest bank, declined 5,000 yen, or 4.6 percent, to 104,000. Mizuho Financial Group Inc., Japan's biggest lender, was untraded on a glut of sell orders, with the latest offer at 71,100 yen, down 4 percent from Friday's closing price. Resona's bailout ``will just show that things in Japan haven't changed much,'' Gareth Evans, who helps manage $220 million in Japanese assets as a managing director at Hawaii-based Prospect Asset Management, said over the weekend. Elsewhere, Kyocera led declines among exporters. Kyocera fell 60 yen, or 1 percent, to 6,010. The world's largest maker of ceramic packaging used to protect finished microchips gets more than half of its sales from overseas. Sony Corp. dropped 20 yen, or 0.7 percent, to 2,900. The maker of the PlayStation 2 game console and Vaio computers relies on the U.S. for a third of its sales. A 1-yen gain against the dollar cuts as much as 8 billion yen to Sony's operating profit. The dollar slid last week to its lowest value against the yen in more than two years. The yen currently traded at 115.66. The dollar has fallen 21 percent against the euro and 7.7 percent against the yen in the past 12 months. Last Updated: May 18, 2003 20:33 EDT

To: borb who wrote (3340)	5/20/2003 3:47:31 PM
From: Elmer	Read Replies (1) \| Respond to of 3902

The banks may get clean opinions for whatever that's worth. Dow Jones Business News Mizuho Group Gets Clean Bill Of Health From Its Auditor -FT Monday May 19, 8:28 pm ET TOKYO -(Dow Jones)- Mizuho Financial Group Inc. (J.MFN or 8411), the world's largest bank ranked by assets, has received a clean bill of health from its auditor, Shin Nihon - the same company that triggered the crisis at Resona Holdings Inc. (J.RSN or 8308), Japan's fifth-largest bank, after it refused to approve the bank's accounts, the Financial Times reported on its Web site Tuesday. Bankers said Shin Nihon's backing for Mizuho's accounts indicates there is little chance of a Resona-style crisis spreading to Japan's four leading banks - Mizuho, Sumitomo Mitsui Financial Group Inc. (J.SMF or 8316), Mitsubishi Tokyo Financial Group Inc. (MTF or 8306) and UFJ Holdings Inc. (J.UFJ or 8307) - and will also offset concerns of a broader systemic crisis, the FT reported. All four megabanks are due to report their results for the year ended March on Monday amid deep uncertainty over the state of the financial system. It is understood, however, that the auditors of all four banks have either approved or are close to approving their accounts. Resona sought an injection of government funds last weekend after Shin Nihon balked at approving accounts that revealed 77% of its Tier 1 capital was made up of deferred tax assets, the report said.