Most Japanese Stocks Climb on Global Rate Cuts, Low Valuations

By Patrick Rial and Masaki Kondo

Oct. 9 (Bloomberg) -- Most Japanese stocks rose as central banks and governments globally moved to shore up the financial system, prompting investors to buy shares in Asia's cheapest stock market.

Nomura Holdings Inc. climbed 5 percent after U.S. Treasury Secretary Henry Paulson indicated he may buy stakes in banks, and nine central banks lowered interest rates. Nintendo Co., which had lost more than half its value this year, rallied 13 percent, its daily limit. Mitsubishi Corp. gained 8.4 percent, after shares on the Topix became the only benchmark in Asia to fall below book value, according to Bloomberg data. Aeon Co. plunged after weak consumer demand eroded profit.

The Topix gained 6.10, or 0.7 percent, to 905.11 at the close of trading in Tokyo. The Nikkei 225 Stock Average lost 45.83, or 0.5 percent, to 9,157.49. About three stocks rose for every two that fell.

``We're making changes to our portfolio to get into some attractive shares,'' said Hideyuki Ookoshi, who helps oversee about $365 million at Chiba-Gin Asset Management Co. in Tokyo. ``There's buying of blue-chip companies that from a long-term perspective are solid bargains, even though it's unclear if we've hit rock bottom.'' He declined to comment on what shares he was buying.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net.