TOKYO, Nov. 18, 2009 (Kyodo News International) --
(Editors: ADDING DETAILS AND PRICES)
Tokyo stocks fell Wednesday, with the key Nikkei index logging a six-week closing low, as jitters about a series of corporate equity financing plans and economic policy uncertainties continued to haunt investors.
The 225-issue Nikkei Stock Average fell 53.13 points, or 0.55 percent, from Tuesday to 9,676.80, its lowest close since Oct. 5 when it finished at 9,674.49. The broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 6.94 points, or 0.81 percent, to 850.06, its lowest since 846.85 logged on May 1.
Struggling Japan Airlines touched an all-time intraday low of 94 yen since it integrated operations with Japan Air System in 2002, after transport minister Seiji Maehara declined to rule out legal liquidation proceedings.
The broad-based decline was led by real estate, consumer finance, and iron and steel issues. Major gainers included the land transport, pharmaceutical and chemical sectors.
The Nikkei index lost ground despite clinging to positive territory most of the morning as the Dow Jones index's fresh 13-month closing high Tuesday initially lifted sentiment in Tokyo. The broader Topix index fell for the sixth straight session.
''Megabanks and other financial shares were a particular drag,'' said Hiroichi Nishi, Nikko Cordial Securities Inc. equity manager. Fears that planned corporate fundraising will dilute the value of outstanding shares and that such massive financing moves will continue through early 2010 have been weighing on the market recently.
Fumiyuki Nakanishi, chief equity strategist at SMBC Friend Securities Co., said, ''All we're seeing are negative cues -- the risk of JAL going bankrupt, an anticipated announcement later today by Mitsubishi UFJ Financial Group on its equity financing plan, and probably more others to follow.''
Among other factors souring sentiment is continued uncertainty about the new government's economic policies such as additional stimulus measures, brokers said.
Eyes were on whether Mitsubishi UFJ Financial Group Inc., Japan's largest banking group in terms of assets, would announce a reported plan to raise 1 trillion yen by issuing new common shares by the year's end when posting its interim earnings results after the bell Wednesday, brokers said.
Investors feared other banks will also seek to boost capital, sending Sumitomo Mitsui Financial Group, the day's value leader, down 180 yen, or about 6 percent, to 2,850 yen. Volume leader Mizuho Financial Group lost 4 yen, or over 2 percent, to 166 yen.
On the First Section, declining issues outnumbered advancing ones 1,020 to 572, with 91 others remaining unchanged.
Japan Airlines ended down 4 yen, or about 4 percent, to 98 yen.
Consumer lender Takefuji fell by its daily limit of 80 yen, or about 18 percent, to 365 yen on a credit rating downgrade by Standard and Poor's. The day's biggest percentage loser was followed by real estate developer Tokyo Tatemono, which lost 64 yen, or over 16 percent, to 323 yen after saying Tuesday it will raise capital by issuing new shares.
Bucking the trend, East Japan Railway rose 190 yen, or over 3 percent, to 6,010 yen amid speculation that reconsideration of the government's plan to make all highways toll-free may hurt railway operators less.
Among other defensive shares that gained, Dainippon Sumitomo Pharma rose 29 yen, or over 3 percent, to 883 yen.
In the most active trading day in three weeks, volume on the main section came to 2,263.80 million shares, up from Tuesday's 1,914.58 million.
The TSE's Second Section index was down 26.55 points, or 1.31 percent, to 1,994.87 on a volume of 61.84 million shares. On the Osaka Securities Exchange, the near-term December Nikkei 225 index futures contract was down 70 points to 9,670.
