By Masaki Kondo
Dec. 22 (Bloomberg) -- Japan stocks rose after the U.S. agreed to provide automakers with emergency loans to stay in business, easing concern a recession in the world’s biggest economy will deepen.
Hino Motors Ltd. added 1.7 percent after the White House said on Dec. 19 General Motors Corp. and Chrysler LLC will get $17.4 billion in loans. Aisin Seiki Co., a maker of auto transmissions and a supplier to U.S. carmakers, advanced 3.3 percent. Nidec Corp., the world’s biggest maker of disk- drive motors, declined 2.1 percent after cutting its profit forecast on falling demand and the stronger yen.
The Nikkei 225 Stock Average climbed 14.34, or 0.2 percent, to 8,602.86 as of 9:06 a.m. in Tokyo. The broader Topix index rose 4.43, or 0.5 percent, to 838.86.
“Policy responses from governments will continue to shore up investor sentiment, though the deterioration of the global economy and company earnings won’t end soon,” Tomochika Kitaoka, a Tokyo-based strategist at Mizuho Securities Co., said in an interview with Bloomberg Television.
The Nikkei has lost 44 percent this year, poised for its worst annual performance on record, as the global financial crisis dragged the world’s biggest economies into recession. Losses and writedowns tied to the collapse the U.S. subprime- mortgage market rose above $1 trillion last week.
President George W. Bush’s rescue plan for the automakers helped push the Standard & Poor’s 500 Index up 0.3 percent on Dec. 19. GM, the biggest U.S. automaker, and closely held Chrysler would have run out of cash as soon as this month without the loans.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
Posts
No comments:
Post a Comment