Filed under: Equities, Economy, UK

The London equities markets were higher on Tuesday, with the FTSE 100 adding 0.6 percent to 6,086.4 and the FTSE 250 up 0.7 percent to 10,834.1. The oil and mining sectors helped in the gains.

In the telecommunications sector, Carphone Warehouse was 7.6 percent higher to 291¾p after its chief executive told Merrill Lynch Monday night that it has gotten back some contract business from Vodafone.

Premier Foods added 6.9 percent to 301½p as rumors circulated that the private equity owners of United Biscuits would be interested in a takeover attempt. Most analysts did not credit the possibility, however, and put the gains more to the recent bid by Premier for rival RHM, which gained 5.7 percent to 377¾p. If the Premier/RHM deal goes through the company created will be the UK’s leading food producer.

In the oil sector, BP was 1.8 percent higher to 578p when UBS named it one of its top picks for next year. Meanwhile, Royal Dutch Shell added 2 percent to £18.25 after ABN Amro raised its recommendation to “buy”.

Among miners, Anglo American was up 3.2 percent to £24.55 on talk that Larry Yung was interested in further building his stake in the company. Higher copper prices sent both Kazakhmys and Antofagasta higher as well. Kazakhmys added 3.1 percent to £12.17, while Antofagasta gained 4.6 percent to 530p.

In the tobacco sector, Gallaher was 3 percent higher to 986½p on expectations of consolidation within the sector. However, SG Securities reiterated its “sell” recommendation on the tobacco company on the basis that it was an unlikely takeover target.

Filed under: Equities, Economy, Europe

In Europe on Tuesday the FTSE Eurofirst 300 added 0.7 percent to 1,439.93, helped out by a strong start to the trading day in New York.

Stock exchanges were higher on the session. Deutsche Borse added 2.2 percent to €127.25 on an upgrade from “hold” to “add” by West LB. Even though the broker dropped its target price for Euronext while reiterating its “hold” recommendation, the pan-European exchange gained 2.3 percent to €87.30 after European regulators provisionally approved its takeover by NYSE Group.

Among airlines, Alitalia was 6.4 percent higher on an announcement from the Italian government that it will sell at least 30.1 percent of its stake in the airline. Italian law will require whoever buys the government stake to make a cash offer for the rest of the carrier.

In France, EDF gained 2.6 percent to €53.35 as it continued to reap benefits from a ruling last Friday that in practical terms meant that French rates for electricity are likely to rise.

The pharmaceuticals sector was up on news about diabetes drugs. Sanofi Aventis added 3 percent to €67.85 after it said a weight-loss drug, Acomplia, could also help in the treatment of type-2 diabetes. Meanwhile, Novo Nordisk gained 4.3 percent to DKr464.50 on its claim that a long-acting insulin, Levemir, both helped blood sugar levels in those with diabetes but also helped them lose weight.

Filed under: Equities, Economy, Asia, Japan

The Tokyo equities markets were lower on Tuesday as investors worried about interest rates at home as well as the state of the US dollar and how export-focused business would be affected if it continues to decline. The Nikkei 225 fell 0.2 percent to 16,265.76. The Topix dropped even more, declining 0.6 percent to 1,598.89.

The worries of export-related sectors were illustrated by declines in the electronics sector, which dropped 0.5 percent as a whole. Sharp and Sony each fell 0.9 percent, to ¥1,910 and ¥4,510 respectively. Transport equipment fared even worse, as the sector dropped 0.7 percent.

Monday’s fall in oil prices benefited the airlines and shipping sectors. Shipping was up 2.7 percent as a whole. Nippon Yusen added 2.3 percent to ¥838, while Kawasaki Kisen gained 3 percent to ¥864 and Mitsui OSK was 3.1 percent higher to ¥1,091.

All Nippon Airways added 0.7 percent to ¥425 not only after oil prices fell but on the news that they are in merger talks with South Korea’s Asiana Airlines.

The lower oil prices, however, sent shares in Inpex 3.4 percent lower to ¥995,000.

In the retail sector, Fast Retailing was 5.7 percent higher to ¥10,910 after it said that same-store sales were up 8 percent in November over the same period last year, helped by cold weather clothing sales.

Filed under: Equities, Economy, US

The New York equities markets were higher at midday on Monday, helped out by falling oil prices. The Dow Jones Industrial average was 0.5 percent higher to 12,256.78, while the Nasdaq Composite was up 1.3 percent to 2,444.20 and the S&P 500 had added 0.6 percent to 1,405.15. The small-cap Russell 2000 index was up 1.6 percent to 793.32, just below its all-time high.

In the financial services sector, Bank of New York said it will purchase Mellon Financial for $16.5 billion, all in stock. If the deal is closed, it will create the largest financial assets service company, with control of around $16,000 billion. Bank of New York had added 11.1 percent on the news by the middle of the day to $39.41, while Mellon gained 4.4 percent to $42.27.

Station Casinos added 18.7 percent to $82.02 and was up to $82.28 earlier in the day after it said it has received a bid from a group of investors headed by the chairman and chief executive of the company. The offer was said to be worth $4.7 billion.

IBM was 1.6 percent higher to $92.73 on positive notice from the press over the weekend.

The pharmaceuticals sector saw declines after Pfizer and Onyx Pharmaceuticals each received bad news about drugs in trials. Pfizer fell 11.8 percent to $24.58 after dropping as low as $23.52 on the announcement that it has abandoned development of its Torcetrapib, intended to treat high cholesterol, after patients in trials had a high incidence of deaths and cardiovascular events. Meanwhile, Onyx dropped 28.9 percent to $12.44 on the announcement that Nexavar, a drug for the treatment of kidney cancer, had not helped skin cancer patients in trials.

Filed under: Equities, Economy, Europe

Mergers and acquisitions rumors once again helped European equities see gains on Monday as the FTSE Eurofirst 300 added 0.6 percent to 1,429.95.

The airlines sector was mixed on the session. On an announcement by the Italian government that it will reduce its stake in Alitalia to less than 30 percent, from the 49.9 percent that it now holds, the Italian air carrier added 2.4 percent to €0.96. Air France-KLM, which recently said that it is in preliminary talks with Alitalia concerning a possible merger, dropped 0.7 percent to €30.30. Analysts for Citigroup, however, felt that it would be more likely that domestic bidders would be interested rather than foreign carriers such as Air France or Lufthansa. Lufthansa was nonetheless 2.4 percent higher to €19.95 when Morgan Stanley reaffirmed its “overweight” rating and lifted the carrier’s target share price from €18.20 to €25.

In the utilities sector, Spanish power generators were up on rumors that the government could hike electricity tariffs by 10 percent in 2007. If this turns out to be the case, it would be largest increase in the tariffs in 20 years. Endsea was 0.4 percent higher to €35.15, while Iberdrola added 1.5 percent to €33.48 and Union Fenosa gained 2.7 percent to €39.94.

Also in Spain, property group Inmocaral purchased 15 percent of builder FCC from Acciona. FCC added 3.6 percent to €75.20 and Inmocaral was 5.7 percent higher to €5.38. Acciona, which did not say how it would use the €1.53 billion it will receive for the transaction, gained 0.4 percent to €131.50. Some analysts expect that Acciona will use the money to buy more of a stake in Endsea as part of an attempt to foil Germany’s Eon from acquiring Endsea. Eon was 1.5 percent higher on the session, to €95.90.

Filed under: Equities, Economy, Asia, Japan

Tokyo’s major stock indices were nearly unchanged on Monday, with the Nikkei 225 slightly lower and the Topix index slightly higher. However, the Mothers index of small and mid-cap stocks continued its gains with as it gained 1.1 percent to 1,158.58. The Nikkei closed 0.1 percent lower to 16,303.59, while the Topix added .2 percent to 1,607.74.

Domestic sectors were generally higher. Real estate was 1.5 percent higher as a sector, with Mitsui Fudosan gaining 1.1 percent to ¥2,780 and Mitsubishi Estate adding 1.7 percent to ¥2,960.

The consumer finance sector was also higher as it continues to come back from the imposition of a government cap on the amount of interest lenders can charge their customers. Credit Saison added 2.2 percent to ¥4,190, while Promise gained 3.3 percent to ¥4,020. Takefuji was 3.5 percent higher to ¥4,740 and Aiful was up 5.4 percent to ¥3,880.

Nippon Steel added 1.3 percent to ¥528 when it said it is thinking about purchasing a stake in China’s largest steel company, Baosteel.

Nissan Motor was lower, dropping 1.4 percent to ¥1,393 after it said November sales were down in both the domestic market and in the United States.

Tech sectors also saw declines after the Nasdaq Composite dropped last week in the US. Semiconductor-related Advantest was 0.8 percent lower to ¥6,030. In the electronics sector, Sony dropped 1.5 percent to ¥4,550.

Filed under: Equities, Economy, US

At midday in New York on Friday the Dow Jones Industrial Average was 0.33 percent lower to 12,181.39, while the Nasdaq Composite dropped 0.76 percent to 2,413.37 and the S&P 500 fell 0.31 percent to 1,396.26. The declines came after the Institute for Supply Management reported that its manufacturing index was at 49.5 percent in November, down from 51.2 in October. Analysts had expected that the index would stay above 50 and actually advance a bit to 51.5.

Despite the declines on the day, all three indices are up so far for the year, with the Dow 13.66 higher, the Nasdaq up 9.43 percent and the S&P 11.85 higher since the beginning of January.

The automobile manufacturing sector was mixed on the day. General Motors added 4 cents to $29.27 on a high number of shares traded after Kirk Kerkorian sold his stake in the carmaker. But Ford fell 12 cents to $8.01 after it said sales in the US had dropped by 9.6 percent in November, while DaimlerChrisler AG was 40 cents lower to $57.88 even though it said sales were up 4.7 last month.

Home Deopt was up $1.27 to $39.24 on rumors that a number of private equity sources might be interested in bidding for the home improvement retailer.

In the construction equipment sector, Caterpillar dropped $1.13 to $60.90.

Among semiconductors manufacturers, Intel fell 45 cents to $20.95.

Filed under: Equities, Economy, UK

London’s equities markets were mixed on Friday. The FTSE 100 dropped 0.5 percent to close at 6,021.5 after falling as low as 5,985.2 during the day, bringing its decline over the week to 1.6 percent. On the other hand, the FTSE 250 added 0.2 percent on the session and was up by the same amount for the week, to close at 10,698.9.

Miners were higher, with Xstrata 2 percent higher to £23.26 and Antofagtasta adding 3.2 percent to 495p as Goldman Sachs predicted that commodities prices will be going up further. The broker put Xstrata on its “conviction buy” list.

Leisure group Rank dropped 2.9 percent to 270p after a rumored bid was not forthcoming and Citigroup downgraded it to “hold”. Meanwhile, cruise operator Carnival fell 1.9 percent to £24.29 on a reduced recommendation, from “buy” to “hold”, from Merrill Lynch.

In the pharmaceuticals sector, AstraZeneca dropped 2.1 percent to £28.90 as sterling gained ground over the US dollar.

Among insurance companies, Legal & General fell 2.2 percent to 148½p as bids rumors faded.

Construction materials group Hanson was 1.4 percent lower to 719p.

Bucking the trend among the blue-chips, Cairn Energy added 4.4 percent to £20.57. Cairn is preparing to spin off its India unit with an initial public offering in Bombay later this month. That IPO is estimated to be worth as much as $7.5 billion (£3.8 billion). In addition, there was talk that Cairn’s Indian partner, ONGC, might be interested in acquiring Cairn’s assets in Rajasthan.

Filed under: Equities, Economy, Europe

The FTSE Eurofirst 300 was 2 percent lower over the week, closing at 1,421.17 on Friday as a strong euro hurt several sectors. One analysis said that corporate profits could be down by up to 4.4 percent next year if the euro continues to strengthen. New data showing that the US economy is slowing down also hurt European equities.

In the automobile and transport equipment sector, most stocks dropped. The exception was MAN, which added 1.1 percent to €70.71 as rumors circulated that Scania could counter bid for the German truck maker while rejecting its overtures. Scania was 0.4 percent lower to SKr473. Elsewhere among carmakers, BMW fell 3.8 percent over the week to €41.20, DaimlerChrysler dropped 4.7 percent to ¥43.41, and Renault was 5.1 percent lower to €88.35.

The pharmaceuticals sector was lower as well. Bayer only dropped 0.4 percent to €38.83, but Roche fell 3.8 percent to SFr212.3 during the week.

Cell phone maker Nokia was 6.8 percent lower over the week to €14.91 on a reduced outlook on profits and negative comments from Dresdner Kleinwort, which said that Nokia’s net income could decline as much as 20 percent in 2007. On the other hand, positive comments from Morgan Stanley helped airline Lufthansa add 1.4 percent over the week to €19.49.

Filed under: Equities, Economy, US

The New York equities markets were lower in early afternoon trade on Thursday after the Chicago Purchasing Manager’s index showed regional manufacturing in the Midwest was at 49.9 in November, a drop from October’s reading of 53.5. It was the first time since April 2003 that the Chicago index had come in below 50, the level at which manufacturing is said to be contracting rather than expanding. Some analysts were afraid that the new data was an indicator of what the nationwide purchasing managers numbers will say when the Institute for Supply Management releases its new figures on Friday.

The Dow Jones Industrial Average was 0.28 percent lower by early afternoon in New York to 12,193.01, while the Nasdaq Composite had dropped 0.08 percent to 2,430.18 and the S&P 500 was 0.07 percent lower to 1,398.50.

Other factors in the decline were higher oil prices, a weaker dollar, and more new unemployment claims filed last week than had been expected. The good news was that, according to the US Commerce Department, consumer spending was up 0.2 percent in October after having fallen in September. That news was tempered, however, by an announcement from Wal-Mart that it expects its same-store sales to be even to only 1 percent higher in December. That news sent shares in the discount retailer 78 cents lower to $46.11.

Elsewhere in the retail sector, Gap Inc. dropped 2.5 percent to $18.59 on a bigger decline in same-store sales in November than had been expected. Meanwhile, Abercrombie & Fitch fell 3.4 percent to $67.21.

In the pharmaceuticals sector, Pfizer added 49 cents to $27.56 after it said that it has a number of products that would enter the end stages of the development process in the next few years. It also increased its forecast for profits for the full year.

Filed under: Equities, Economy, UK

London’s equities markets were mixed on Thursday as the FTSE 100 dropped 0.6 percent to 6,048.9 but the FTSE 250 added 0.1 percent to 10,673.9.

Miners were mostly up on the session, the exception being Anglo American, which dropped 0.25 percent to £23.62. Rio Tinto added 0.8 percent to £27.15, while Xstrata and BHP Billiton gained 1.1 percent each, to £22.80 and 965p respectively. Analysts at Citigroup issued remarks saying that Billiton should divest itself of its petroleum unit and that Rio Tinto should get rid of its Industrial Minerals division in order to kick-start performance.

The pharmaceuticals sector saw declines. GlaxoSmithKline dropped 1.4 percent to £13.51, while AstraZeneca fell 1.9 percent to £29.50 and Shire was 2.1 percent lower to £10.19. There has been talk lately that GlaxoSmithKline might be interested in AstraZeneca, but some analysts believe that AstraZeneca is more likely to be a bidder, possibly for Shire, than a target of bids.

Building materials group Hanson added 0.5 percent to 729p on rumors that Mexico’s Cemex could be interested in bidding, especially after its bid for an Australian company was rejected earlier in the week. Meanwhile in the leisure sector, casino operator Rank was 2 percent higher to 278p on rumors that it could be a target for bidders.

Filed under: Equities, Economy, Asia, Japan

New data on the growth of the US economy helped the Tokyo equities markets to gains on Thursday. Both export-focused and domestic stocks benefited. The Nikkei 225 added 1.2 percent to 16,274.33, while the Topix index gained 1.5 percent to 1,603.03. The Mothers index of small and mid-cap stocks did ever better, ending 2.5 percent higher to 1,152.81.

Domestically, the securities and consumer finance sectors were higher. Consumer finance companies, which have had a bad year as the government made attempts to limit how much interest they can charge customers on loans, saw especially large gains. Credit Saison gained 6.5 percent to ¥4,080, while Takefuji added 9.7 percent to ¥4,630 and Aiful jumped 10.8 percent to ¥3,700.

The securities sector was 3.6 percent higher as a whole. Daiwa Securities was 3 percent higher to ¥1,327, while Nomura Holdings added 3.8 percent to ¥2,030 and Nikko Cordial gained 3.9 percent to ¥1,430.

With crude oil prices still rising, upstream oil company Inpex was 1.6 percent higher to ¥997,000.

Automobile manufacturers also managed advances. Toyota added 1.3 percent to ¥7,020, while Honda Motor gained 2.2 percent to ¥4,100. Meanwhile, construction machinery manufacturer Komatsu was 2.7 percent higher to ¥2,105.

Filed under: Equities, Economy, US

The New York equities markets were higher on Wednesday afternoon, with the Dow Jones Industrial Average up 0.4 percent to 12,190.12. The Nasdaq Composite had gained 0.4 percent as well, to 2,421.54, while the S&P 500 was 0.6 percent higher to 1,394.62. Gains came after the US Commerce Department said that the US economy grew at a 2.2 percent annualized rate in the third quarter, above the 1.6 percent growth rate estimated last month.

There were gains in the telecommunications sector. Verizon added 1.8 percent to $35 after AG Edwards raised its rating from “hold” to “buy”. AT&T gained 3 percent to $33.77 on the announcement that its high-speed internet service will be available at Wal-Mart stores in 13 states. Bell South and Qwest Communications were each 3.4 percent higher, to $44.34 and $7.86 respectively. Bell South said it will introduce a toll-free telephone service for homes, while Goldman Sachs took Qwest off its “least favorite” list.

The oil sector saw gains as crude oil prices advanced. ExxonMobil, Chevron, and ConocoPhillips all were up by 1.6 percent, with ExxonMobil at $75.37, Chevron at $70.96, and ConocoPhillips trading at $65.91.

In the pharmaceuticals sector, Pfizer added 0.2 percent to $27.11 after it said it will lay off 2,000 sales representatives in the US, a job cut of around 20 percent of its sales force in the States.

Filed under: Equities, Economy, UK

The London equities markets were higher on Wednesday in reaction to overnight gains in New York and Tokyo, while the pharmaceuticals sector was higher and financial services gained on bids rumors. The FTSE 100 added 0.6 percent to 6,065.3, while the FTSE 250 gained 1.5 percent to 10,659.1.

Miners were up on higher prices for several metals. BHP Billiton added 1.8 percent to 954p, while Xstrata was 2.1 percent higher to £22.49.

In the pharmaceuticals sector, AstraZeneca was up 2.5 percent to £30.03. Shire added 2.7 percent to £10.34 on an upgrade from “neutral” to “overweight” from HSBC, while GlaxoSmithKline gained 3 percent to £13.71. Gains in the sector were helped by news that Swiss pharma group Novartis is thinking of selling its baby food unit, Gerber Products, to Nestle.

Among financial services groups, Prudential was 2.1 percent higher to 660p on rumors that HSBC could be interested, while Legal & General added 3 percent to 154p on talk that Dutch insurer Aegon was thinking of bidding.

In the software sector, Sage added 6.2 percent to 256p on its report that its pre-tax profits were up 14 percent in the quarter. Meanwhile plumber Wolseley gained 3.8 percent to £11.78 even though its fiscal first quarter profits were up only slightly.

Filed under: Equities, Economy, Europe

The FTSE Eurofirst 300 came back from a series of losing sessions to gain 1.3 percent on Wednesday, closing at 1,443.38. It was the best percentage gain for the 300 in two months.

The car and truck manufacturing sector was instrumental in the day’s gains. Even though Porsche said its share of Volkswagen was steady at 27.4 percent, rumors - which were denied by Porsche - persisted that it is getting ready to make a bid for VW, possibly in conjunction with private equity. Porsche added 3.8 percent to €887.39, while VW gained 4.3 percent to €85.50 as almost 16 million shares changed hands. VW has added 168 percent to its share value since April 2005.

Meanwhile, German truck maker MAN was 5.2 percent higher, to €70.79 on rumors that Scania, which MAN is trying to buy, could offer a counter bid. Scania dropped 0.9 percent to SKr465. Elsewhere in the sector, DaimlerChrysler added 1 percent to €44.40, Peugeot was 1.8 percent higher to €48.01, and Fiat gained 3.1 percent to €14.31.

In the utilities sector, Iberdrola added 4.4 percent to €33.48 after its bid for Scottish Power led Merrill Lynch to reconfirm its “buy” recommendation. On the other hand, WestLB cut its targets share price for Iberdrola to €34, citing its belief that the Spanish utility is paying too much for Scottish Power.

Filed under: Equities, Economy, Asia, Japan

Data showing that factory output in Japan was up a seasonally-adjusted 1.6 percent in October sent the Tokyo equities markets higher on Wednesday. The Nikkei 225 went back over the 16,000 mark, ending the session 1.4 percent higher to 16,076.20. The Topix index added 1.6 percent to 1,580.10. The best factory performance came in the automobile manufacturing and semiconductors sectors, both of which saw gains on the session.

In the semiconductors sector, Advantest gained 1.5 percent to ¥6,060, while Elpida Memory was 3 percent higher to ¥5,550. Meanwhile among carmakers, Nissan Motor was up 0.7 percent to ¥1,299 and Toyota added 1.5 percent to ¥6,930.

The securities sector also saw gains. Nomura Holdings gained 3.7 percent to ¥1,955, while Daiwa Securities added 4.4 percent to ¥1,288. Banks did well, too, with larger banks seeing bigger gains than smaller ones could manage. Sapporo Hokuyo, based in Hokkaido, was up 0.9 percent to ¥1,110,000, while Bank of Fukuoka, which has its center of operations in Kyushu, gained 1.1 percent to ¥856. Meanwhile, Mitsubishi UFJ was 2.1 percent higher to ¥1,450,000.

The transport sector was up after Credit Suisse hiked target share prices there. Nippon Yusen gained 2.9 percent to ¥804, while Kawasaki Kisen was up 3.1 percent to ¥828 and Mitsui OSK added 5 percent to ¥1,046.

Filed under: Equities, Economy, UK

The FTSE 100 dropped 0.4 percent to 6,025.9 in London on Tuesday, ending lower for the sixth straight session and at its lowest level since the beginning of October. It has fallen 2.9 percent since its current decline began. On the other hand, the FTSE 250 was up slightly to 10,497.2.

Homebuilder Wilson Bowden was 3.7 percent higher on the session to £21.76 and Merrill Lynch raised its target share price to £24.50. Also helping the 250 was EMI; the music company added 10.4 percent to 289½p on the news that it has been approached.

The 100 was hurt by losses in the financial services sector, as Old Mutual dropped 5.8 percent to 166p on its third quarter earnings report.

Also seeing declines was ITV, which dropped 1.5 percent to 110¾p on the general opinion that the appointment of a new executive chairman makes any bids unlikely.

In the steel sector, Corus fell 0.3 percent to 498p on rumors that Tata Steel is thinking of increasing its bid. Meanwhile it put off a vote by shareholders to see if CSN of Brazil will up its offer.

Gainers on the session included tobacco company Gallaher, which added 1.7 percent to 952p on talk that Japan Tobacco might be interested. Also higher was yellow pages owner Yell, which was 2.3 percent higher to 570p on positive comments from Goldman Sachs.

Filed under: Equities, Economy, Europe

In Europe on Tuesday, the FTSE Eurofirst 300 came back from early losses but still ended the session 0.3 percent lower to 1,425.35. The 300 was down 0.6 percent at one point on the session.

The pharmaceuticals sector was lower. Roche dropped 1.5 percent to SFr215.50 even though Bear Stears made positive comments, reaffirming its “outperform” rating and target share price of SFr280 for the Swiss drug maker. Meanwhile, Akzo Nobel was 1.7 percent lower to €41.86 after announcing that US drug company Pfizer had dropped out of a development deal with the Dutch group.

Utilities were lower as well. Finnish utility Fortum dropped 1.4 percent to €22.44 after it abandoned plans to raise electricity rates for its domestic non-commercial customers. Iberdrola issued an expected bid for Scottish Power but the offer was lower than expected, sending its shares 2.1 percent lower to €32.06. German utility RWE, up recently on bids rumors, fell 2.6 percent to €83.80.

The automobile manufacturing sector was mixed as the euro hit its highest level in almost two years in relation to the US dollar. Volkswagen and Porsche were both higher, with Porsche adding 0.3 percent to €854.55 and VW gaining 2.5 percent to €82 on rumors that Porsche was building more of a stake in VW. On the other hand, BMW and Renault each dropped 0.3 percent, to €41.72 and €91.25 respectively, while DaimlerChrysler was 0.7 percent lower to €43.96.

Filed under: Equities, Economy, Asia, Japan

In Hong Kong on Tuesday, the Hang Seng index dropped 2.9 percent to 18,639.53. The index fell 564.48 points, its worst one-day loss since the day after the September 11 attacks in the United States in 2001. The declines came after recent gains that sent the Hang Seng to an all-time closing high of 19,265.32 just last Thursday.

The worst of the declines came in the banking and real estate sectors. Also dropping substantially was exporter Li & Fung, which fell 4.1 percent to HK$22.05 on Wal-Mart’s statement of lower sales in November. Among mainland banks see significant losses were Commercial Bank of China and Bank of China, which were each 5.3 percent lower, to HK$3.76 and HK$3.56 respectively. China Construction Bank dropped 6.4 percent to HK$3.79. In the real estate sector, Sung Hung Kai dropped 4 percent to HK.95 and Cheung Kong was 5.1 percent lower to HK$90.55.

In Tokyo on Tuesday the equities markets were mixed, with the Nikkei225 down 0.2 percent to 15,855.26 while the Topix added 0. Percent to 2,555.11. The Mothers market of small and mid-cap stocks gained 1.5 percent to 1,118.55.

Export stocks were generally lower. In the automobile manufacturing sector, Toyota fell0.7 percent to ¥6,830 while Honda dropped 2.5 percent to ¥3,940. The electronics sector also saw losses. Sanyo Electric was 1.2 percent lower to ¥168 on the announcement that it will see losses for the third year in a row, while Sony dropped 1.7 percent to ¥3,970.

The real estate sector added 1.4 percent as a whole, with Sumitomo Realty & Development gaining 1.5 percent to ¥3,480. In the telecommunications sector, meanwhile, Softbank was up 2.4 percent to ¥2,370. Still, not all domestic sectors saw positive movement. The retail sector dropped 0.6 percent, with Aeon down 0.8 percent to ¥2,660.

Filed under: Equities, Economy, Asia, Japan

In Tokyo on Monday equities markets saw gains, especially in domestically-focused stocks, as the Nikkei 225 added 1 percent to 15,885.38 and the Topix index ended the session 1 percent higher as well, at 1,553.01.

Export-focused stocks did not have as good a day of it. In the electronics sector, Sony dropped 0.7 percent to ¥4,570 after it said that eight of its best-selling models of digital cameras were defective, becoming unable to take pictures when exposed to heat and humidity. Sanyo, meanwhile, fell 5.6 percent to ¥170 as it announced another 2,200 employee layoffs and said it would end the fiscal year with losses for the third year in a row on declining mobile phone sales both in the US and domestically.

Automobile manufacturers saw declines as well. Toyota was 0.2 percent lower to ¥6,880, while Honda Motor was down 0.5 percent to ¥4,040.

Some of the domestic stocks that saw gains on the session were helped by broker upgrades. Fixed-line telecommunications company NTT added 2.3 percent to ¥578,000 on an increased target share price from Morgan Stanley. All Nippon Airways was 3.2 percent higher to ¥423 on an upgrade from Nikko Citigroup, which cited strong demand for international flights. Pharmaceutical company Eisai gained 3.3 percent to ¥6,240 on both a ratings upgrade and a raised target share price from UBS.