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Japan stocks rise on buying of shares with solid earnings

Japan stocks rise on buying of shares with solid earnings

Japanese stocks rose Tuesday as investors snapped up companies that were sold off last week amid concerns about the U.S. subprime loan problems.
The Nikkei 225 benchmark stock index rose 168.86 points, or 1.07 percent, to close at 15,901.34 points on the Tokyo Stock Exchange. The index surged 458.80 points, or 3.00 percent, Monday, posting the largest one-day point gain since June 22, 2006.
The gains in two straight sessions followed steady falls in recent weeks amid the U.S. housing loan crisis and worries about its impact on the global economy.
The downtrend came to a halt this week after the U.S. Federal Reserve cut its key discount rate a half percentage point Friday, pumping up Wall Street and other global markets. Investors in Japan bought financialy sound companies with solid earnings Tuesday.
"The panicky trade is gone. Things are much more stable now," said Mizuho Investor Securities trader Terushige Shibata.
Steel and metal shares led Tuesday's gains. Sumitomo Metal Industries finished up 5.2 percent, and Nippon Steel gained 4.3 percent.
Big-name electronics makers also advanced. Sony ended up 1.3 percent, and Nintendo shot up 5.7 percent.
Tuesday, Japanese and Australian central banks injected more funds into money markets as part of a continuing global effort to ensure market liquidity and calm investors worries over the credit crisis.
Japan's central bank injected 800 billion yen (US$7 billion; euro5.2 billion) into local money markets Tuesday. The Reserve Bank of Australia also said it had injected 3.57 billion Australian dollars (US$4.4 billion; euro3.3 billion) through the purchase of mostly short-term securities, following a similar action Monday.
The market was supported by news that U.S. Treasury Secretary Henry Paulson and Japanese Finance Minister Koji Omi had agreed in a phone conversation Tuesday to cooperate to monitor market conditions.
The broader Topix index of all shares on the exchange's first section rose 26.31 points, or 1.7 percent, to 1,549.88.
The U.S. dollar was trading at 114.90 yen at 2:50 p.m. (0550 GMT) Tuesday, up from 114.86 yen late Monday in New York. The euro fell to US$1.3474 from US$1.3481.


Updated : 2021-10-18 04:17 GMT+08:00