|
Japanese stocks fall after Prime Minister Abe says he'll quit
(Associated Press WorldStream Via Thomson Dialog NewsEdge) TOKYO_Japanese stocks fell Wednesday after Prime Minister Shinzo Abe announced he would resign after a string of damaging scandals and a humiliating electoral defeat.
The benchmark Nikkei 225 index slid 80.07 points, or 0.50 percent, to close at 15,797.60 points on the Tokyo Stock Exchange.
Tokyo stocks initially rallied after the first media reports that Abe intended to step down came early in afternoon trade, but soon retreated.
"Abe's resignation would mean that policy decisions regarding such matters as the budget deficit and the possibility of a consumption tax hike will be up in the air for a while," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Securities. "This is absolutely negative to the stock market."
Others said Abe's exit could prove positive in the longer term if it clears the air and allows the ruling Liberal Democratic Party to stabilize after a series of political missteps. Four Cabinet minister were forced to resign over the past nine months, and one _ his first agriculture minister _ committed suicide over a money scandal.
The Liberal Democratic Party announced it would use a streamlined election process to choose a successor. Kyodo News agency reported the party planned an election for LDP president Sept. 19.
For the near-term, traders said, uncertainty is likely to weigh on Japan's financial markets, compounding ongoing concerns over the U.S. credit crisis.
"Tokyo shares will probably have to go through a double whammy of the resignation news and the U.S. subprime woes for a while," said Hiroaki Kuramochi, head of cash equities department at Bear Stearns in Tokyo.
Banks were the main losers on the day; Mizuho Financial Group fell 2.4 percent to 648,000 yen (US$5,687; 4,114).
Other decliners included Shin-Etsu Chemical Co., down 3.51 percent to 7,680 yen (US$67; 48); Sony Corp., off 0.37 percent to 5,370 yen (US$47; 34); and trading company Marubeni Corp., down 2.35 percent to 870 yen (US$7.64; 5.53).
Real estate companies were among the winners, with Sumitomo Realty & Development Co. adding 1.82 percent to 3,350 yen (US$29.40; 21.27). Toyota Motor Corp. edged up 0.31 percent to 6,450 yen (US$56.61; 40.95), and Mitsubishi Electric Corp. added 3.57 percent to 1,389 yen (US$12.19; 8.82).
Secondhand comic book store operator Mandarake Inc. soared 12.95 percent to 436,000 yen (US$,3827; 2,768) on speculation that Taro Aso, the comic-book loving secretary-general of the LDP, may become the new prime minister.
The broader Topix index, which includes all shares on the exchange's first section, shed 4.12 points, or 0.27 percent, to 1,528.27 points.
In currencies, the U.S. dollar was trading at 113.94 yen at 2:50 p.m. (0550 GMT) Wednesday, down from 114.30 yen late Tuesday in New York. The euro rose to US$1.3868 from US$1.3832.
Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
[ Back To TMCnet.com's Homepage ]
|
INDUSTRIES
Activate Email 
Find Solutions for Enterprises, SMBs & Service Providers at the INTERNET TELEPHONY Conference and EXPO East, January 20-22, 2010. Miami, FL.
