Japan's Stocks Fall, Extending Nikkei Streak, on Profit Concern
Japanese stocks fell, pushing the Nikkei 225 Stock Average's losing
streak to the longest in 54 years, on concern a worsening U.S. auto
market and surging crude oil prices will curb corporate earnings.
Nippon Sheet Glass Co., the world's largest maker of car windows, sent
a gauge of glassmakers to the lowest in more than two months.
Mitsubishi Corp., which gets half of its profit from commodities,
dropped the most in more than a month. Softbank Corp., Japan's
fastest-growing mobile carrier, jumped as investors flocked to
companies resistant to an economic slowdown.
The Nikkei 225 Stock Average slid 20.97, or 0.2 percent, to close at
13,265.40, its 11th-straight drop and the longest losing streak since a
15-day stretch in May 1954. The Topix index dipped 3.13, or 0.2
percent, to 1,298.02 in Tokyo. Two shares fell for each that gained on
the Topix.
Nippon Sheet Glass fell 4.8 percent to 492 yen and NGK Insulators Ltd.,
a maker of engine filters, sank 4.5 percent to 1,987 yen. Nippon Steel
Corp., the world's second-biggest steelmaker, tumbled 2.9 percent,
while smaller rival JFE Holdings Inc. sank 3.9 percent.
A gauge tracking glassmakers dropped to the lowest since April 24 and
led declines among 33 industry groups on the Topix. Steelmakers were
the third-biggest declining group, following trading companies.
Mitsubishi, the nation's largest trading company, tumbled 4.4 percent
to 3,450 yen, the biggest drop since May 23. Mitsui & Co., which
owns a stake in a Brazilian iron mine, slid 3.6 percent to 2,310 yen,
the lowest since June 5.
Shinsei Bank Ltd. gained 4.5 percent to 372 yen, its first gain in five
days. Mitsubishi UFJ Financial Group Inc., Japan's largest publicly
traded bank, jumped 3.2 percent to 949 yen. NTT Urban Development Corp.
climbed 3.9 percent to 134,000 yen and bigger rival Mitsubishi Estate
Co. rose 2.1 percent to 2,405 yen.
Banks and developers, which were the biggest winners among groups on
the Topix today, fell about twice as much as the Topix over the past
month through yesterday.
Softbank, which will start selling Apple Inc.'s iPhone in Japan, added
2.5 percent to 1,903 yen, the sharpest gain since June 5. NTT DoCoMo
Inc., the nation's biggest wireless carrier, rose 1.9 percent to
164,000 yen and rival KDDI Corp. advanced 1.3 percent to 650,000 yen.
European Stocks Rise on Trichet Comments; SocGen, Siemens Gain
European stocks rose for the first time in three days, led by banks and
insurers, after European Central Bank President Jean-Claude Trichet
eased concern policy makers would keep lifting interest rates to
contain inflation.
Societe Generale SA and Allianz SE rallied after Trichet signaled
today's quarter-point rate increase was enough. Siemens AG and L'Oreal
SA led gains among companies that rely on North America for at least a
fifth of their sales as the dollar strengthened against the euro.
AstraZeneca Plc jumped to the highest since January after MF Global
Ltd. recommended buying shares in the U.K.'s second-largest drugmaker.
National benchmark indexes rose in 12 of the 18 western European
markets. The U.K.'s FTSE 100 climbed 0.9 percent. France's CAC 40
gained 1.1 percent, and Germany's DAX advanced 0.8 percent.
ociete Generale, France's second-largest bank, climbed 4.9 percent to
56.22 euros. Allianz, Europe's biggest insurer, advanced 2.1 percent to
110.84 euros.
Credit Agricole SA, France's third-largest bank by market value,
rallied 6 percent to 13.22 euros and Royal Bank of Scotland Group Plc
gained 4.4 percent to 213 pence.
Siemens rose 1.9 percent to 69.32 euros, snapping a five-day drop.
Europe's biggest engineering company generates about 21 percent of its
revenue in the U.S. L'Oreal, the world's largest cosmetics maker,
climbed 2.1 percent to 68.16 euros. The company makes about a quarter
of its sales in North America.
The euro declined the most against the dollar in more than three weeks.
European government bonds rallied, recovering from earlier declines.
AstraZeneca led an advance in health-care shares, rising 3.6 percent to
2,314 pence. MF Global lifted its recommendation on the stock to
``buy'' from ``neutral'' after a U.S. court yesterday upheld a patent
on AstraZeneca's second-best selling product, the Seroquel
antipsychotic. The brokerage also raised its price projection 11
percent to 2,600 pence.
Celesio AG, Europe's biggest drug wholesaler, rallied 4.6 percent to
22.57 euros after Web site apotheke-adhoc.de said a European court will
hear the DocMorris case challenging German restrictions on pharmacy
ownership, citing people with information of the scheduling. DocMorris
is using European laws to get around German rules that regulate the
pharmacy market.
Syngenta AG, the world's biggest maker of agricultural chemicals, sank
4.9 percent to 298 Swiss francs and potash producer K+S AG retreated
5.5 percent to 313.52 euros on concern that a decline in soybean prices
may hurt orders for pesticides and fertilizers.
The price of soybeans dropped today after the worst flooding in the
U.S. Midwest for 15 years had boosted their value to a record. Soybeans
for November delivery fell as much as 2.1 percent to $15.96 a bushel.
ArcelorMittal, the world's largest steelmaker, slipped 3.5 percent to
53.97 euros on concern slowing economic growth will reduce demand for
metals.
Blue chips rally despite oil
Dow and S&P 500 jump after ending the previous session at bear market levels. Investors eye mostly in-line jobs report and dollar strength after ECB hike. Nvidia drags on techs.
Blue chips gained Thursday morning as investors took in stride higher oil prices and a mostly in-line jobs report - and breathed a sigh of relief that the dollar held up despite a rise in interest rates overseas.
The Dow Jones industrial average gained almost 1% nearly 2 hours into the session, thanks to a bounce in GM after the previous session's battering and some strength in financial shares.
The broader Standard & Poor's 500 index rose 0.6%. The tech-heavy Nasdaq composite added 0.2%, with a nearly 30% slump in chipmaker Nvidia exerting pressure.
Oil prices continued to advance Thursday after settling at a record $143.57 a barrel on the New York Mercantile Exchange in the previous session. U.S. light crude for August delivery rose 62 cents to $144.19 after hitting an electronic trading record of $145.85 earlier.
Prices have already risen more than 50% this year in response to tight supply and tensions in the Middle East.
Company news: GM gained nearly 3%, after plunging 15% Wednesday to a near 54-year low, following an analyst downgrade that raised worries about its cash position and the possibility of bankruptcy.
Nvidia shares slumped almost 30% in early trade after warning late Wednesday that current-quarter sales won't meet forecasts due to slower global demand. The graphics chipmaker also said its gross margin - a key measure of profitability - won't meet forecasts.
In the bond market, Treasury prices were little changed, with the yield on the benchmark 10-year note at 3.96%. Bond prices and yields move in opposite directions.