12.09.2008 11:54

Stock market: Thursday summary

Stock market fixing:

Nikkei 225 - 244.13 (-2%) 12,102.50
Topix - 29.66 (-2.5%) 1,162.72
DAX 30 -31.42 (-0.51%) 215.44
САС 40 -34.59 (-0.81%) 4249.07
FTSE 100 -47.80 (-0.89%) 5318.40
Dow +164.79 (+1.49%) 11433.71
Nasdaq +29.52 (+1.32%) 2258.22
S&P +17.01 (+1.38%) 1249.05
10YR +1/32 3.63% 103 1/32

Japan stocks tumbled, sending the Topix index to the brink of a three-year low, on concern falling asset values will batter global financial companies and the slowing economy will reduce manufacturing investment.
Nomura Holdings Inc., Japan's biggest brokerage, sank 5.9 percent after Lehman Brothers Holdings Inc. posted a record loss. Mitsubishi Heavy Industries Ltd. led equipment makers to the lowest in three years after machine orders declined. Mazda Motor Corp. plunged the most in seven years after the euro strengthened against the yen, reducing the value of its European sales.
Lehman, the fourth-biggest U.S. brokerage, yesterday reported a $3.9 billion third-quarter loss, the biggest in its 158-year history. That helped push global writedowns and credit losses caused by the collapse in the U.S. mortgage market to $511 billion, according to figures compiled by Bloomberg News.
Nomura slid 5.9 percent, the most since Sept. 18, 2007, to 1,440 yen, while Shinko Securities Co. sank 6.6 percent to 299 yen. Mizuho Financial Group Inc., Japan's second-biggest publicly traded bank, retreated 5.3 percent to 445,000 yen, and Resona Holdings Inc., the fourth largest, plunged 9.7 percent to 106,600 yen, after having gained 26 percent in the past three days.

European stocks fell for a third day as concern deepened the economic slowdown will hurt earnings for retailers and financial firms.
Home Retail Group Plc sank 5.7 percent after the home- improvement chain reported lower sales. William Morrison Supermarkets Plc tumbled the most in four years as Chief Executive Officer Mark Bolland said he expects ``a tough second half.'' Bank of Ireland Plc dropped 7.8 percent after Dresdner Kleinwort predicted bad-debt levels for the country's lenders may increase. Barclays Plc and Dexia SA slipped for a second day.
Home Retail slumped 5.7 percent to 228 pence, the steepest drop since July 11.
Bank of Ireland slid 7.8 percent to 5.09 euros after Dresdner cut its recommendation for the Dublin-based lender to ``sell'' from ``reduce.'' Allied Irish Banks Plc lost 3.1 percent to 7.85 euros after the brokerage downgraded the nation's largest lender by market value to ``sell'' from ``hold.''
Barclays, the U.K.'s third-biggest bank, fell 2.3 percent to 338.5 pence, while Dexia, the world's largest lender to local governments, slipped 3.3 percent to 10.29 euros in Brussels.

U.S. stocks advanced as transportation companies rallied on lower oil prices, while banking shares staged a comeback in the last half hour of trading on speculation Lehman Brothers Holdings Inc. will be bought.
The Standard & Poor's 500 Index rebounded from a 1.7 percent retreat and financial shares reversed a tumble of 4.2 percent to end the day 1.5 percent higher. CSX Corp., the third-largest U.S. railroad, climbed 11 percent and led the S&P 500 Transportation Index to its biggest gain since July as crude declined and the carrier raised its 2008 earnings forecast. Washington Mutual Inc. and Wells Fargo & Co. led the gain in lenders as prospects of a Lehman takeover eased concern of more bank failures.
The S&P 500 added 17.01 points, or 1.4 percent, to 1,249.05. The Dow Jones Industrial Average jumped 164.79 points, or 1.5 percent, to 11,433.71, erasing a 170-point drop. The Nasdaq Composite Index increased 29.52, or 1.3 percent, to 2,258.22. About three stocks rose for every two that fell on the New York Stock Exchange.
In early trading, the S&P 500 fell below its lowest closing level since 2005 as Lehman slumped as much as 48 percent and dragged down all 87 financial companies in the index. Financial shares erased their drop as people with knowledge of the situation said other firms were reviewing Lehman's books in preparation for a possible takeover bid. The Wall Street Journal reported that Bank of America Corp. is among potential suitors.
Fuel refiners Valero Energy Corp., Tesoro Corp. and Sunoco Inc. made up three of the top eight gains in the S&P 500 after the so-called crack spread on refining profits increased more than 35 percent. The spread is the hypothetical profit margin for processing three barrels of crude into two barrels of gasoline and one of heating oil.
A drop in crude and a rise in gasoline prices spurred the gain in the crack spread as some Texas refineries shut down to avoid damage by Hurricane Ike, expected to make landfall this weekend.
Valero jumped $2.13, or 6.9 percent, to $33.03. Tesoro rallied $1.53, or 9.3 percent, to $17.98. Sunoco added $5.25, or 12 percent, to $47.66.