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Thursday March 22, 6:10 PM2ND LD: Tokyo stocks soar on emerging U.S. rate-cut view(Kyodo) _ (EDS: ADDING INFO ON LAND PRICES IN 17TH GRAF)Tokyo stocks surged Thursday with the key Nikkei index gaining more than 300 points at one point on emerging prospects for a shift to credit easing by the U.S. Federal Reserve. The 225-issue Nikkei Stock Average shot up 256.00 points, or 1.49 percent, from Tuesday to finish at 17,419.20. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 23.51 points, or 1.38 percent, to 1,731.80. Tokyo financial markets were closed Wednesday due to a national holiday. The Nikkei extended its winning streak to the third consecutive trading day as investors actively bought a wide range of shares in Tokyo after U.S. shares surged on the Fed's statement on its monetary policy. The Dow Jones Industrial Average on Wednesday rose 159.42 points, or 1.30 percent, to 12,447.52, while the tech-heavy Nasdaq Composite Index jumped 47.71 points, or 1.98 percent, to 2,455.92. In Washington on Wednesday, the Fed left its key short-term target rate steady at 5.25 percent but dropped its reference to credit tightening and used a more neutral phrase -- "future policy adjustment" -- in its statement, which some market participants took as opening the way for credit easing. "The Fed's statement did not improve the outlook for the U.S. economy, rather, it sparked the view that the central bank would conduct rate-cuts in the near future if the recent U.S. subprime mortgage issue becomes more serious," said Tsuyoshi Segawa, equity strategist at Shinko Securities Co. A surge in default rates for so-called subprime mortgages, or loans to borrowers with weak credit histories, has sparked concern about a possible decline in U.S. personal spending and a downturn in the world's biggest economy. Yumi Nishimura, manager at Daiwa Securities SMBC Co.'s equity marketing department, said upbeat performances by other Asian markets Thursday prompted active buying in Tokyo. The Shanghai benchmark composite index covering both A- and B-shares extended its gains Thursday after hitting an all-time high the previous day, less than a month after seeing its biggest point plunge at the end of February. Foreign investors' appetite for Japanese shares was restored after the Wall Street advance overnight. Foreign brokerage pre-opening buy orders topped sell orders for the first time in eight trading days, brokers said. But after making a leap in the morning, the key Nikkei index was trapped in a tight range and trimmed its gains shortly before the end of the day. "Investors locked in profits as they became cautious with the index set to extend its gains to the third consecutive trading day," Shinko Securities' Segawa said. All 33 sectors advanced in Tokyo, with steel, wholesale and nonferrous metal issues making the most notable gains, each up by more than 2 percent. Real estate issues drew buying on expectations that a government survey due out later in the day will show rises in average land prices in Japan. Mitsui Fudosan rose 40 yen to 3,400 yen, Mitsubishi Estate 50 yen to 3,830 yen and Sumitomo Real Estate Sales 50 yen to 9,430 yen. The government said after the market closed Japan's average land prices for both residential and commercial areas rose in the year to Jan. 1 for the first time in 16 years since peaking in the midst of the economic bubble. Major export-oriented stocks gained ground with Toyota Motor up 60 yen to 7,800 yen, Hitachi 26 yen to 879 yen and Canon 110 yen to 6,540 yen. Chugai Pharmaceutical lost 30 yen to 2,950 yen after the government issued an emergency order late Tuesday that Tamiflu, an antiviral drug commonly prescribed for flu patients in Japan, should not be administered to teenagers due to cases of abnormal behavior by some of those who took the drug. The drugmaker imports Tamiflu and distributes it in Japan. On the First Section, advancing issues outnumbered declining ones 1,453 to 206, with 72 shares ending the day unchanged. Nippon Steel was the most heavily traded issue in value and volume terms, rising 37 yen to 866 yen. Trading volume on the main section increased to 2,165.76 million shares from Tuesday's 1,901.00 million. The TSE's Second Section index rose 28.92 points, or 0.69 percent, to 4,230.76 on a volume of 100.63 million shares. On the Osaka Securities Exchange, the near-term June Nikkei 225 index futures contract was up 240 points to 17,380. |
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