Tokyo stocks fall on 2009 last trading day, Nikkei rises 19% on year

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TOKYO, Dec. 30 Kyodo -
Tokyo stocks fell Wednesday as year-end profit-taking and a soured mood from
Japan Airlines' plunge to a record low outweighed gains from a weaker yen on
the final trading day of the year.
For the year 2009, the Nikkei gained about 19 percent, including recovering
about 50 percent from a 26.5-year closing low logged on March 10. The yearly
climb, which followed a historic 42 percent plunge in 2008, was the first for
the benchmark since 2006.
Despite hitting a four-month intraday high of 10,707.51 at the outset
Wednesday, the 225-issue Nikkei Stock Average closed down 91.62 points, or 0.86
percent, from Tuesday to 10,546.44. Rapidly losing steam toward late trading,
the benchmark failed attempts to renew the year's high of 10,639.71 logged on
Aug. 26.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange
was down 8.28 points, or 0.90 percent, to 907.59.
By sector, air transport saw the largest percentage decrease, followed by
mining, and oil and coal products. The rubber product and warehouse sectors
were the only gainers.
The Topix was up only about 6 percent for the calendar year due to lackluster
performance among heavily weighted banking shares.
This is in sharp contrast with gains of about 20 percent for the U.S. Dow Jones
Industrial Average, 45 percent for the Nasdaq Composite Index at Tuesday
closing levels. It was also lower than rises in emerging markets such as in
Shanghai and India.
''With other major global markets all on the upswing, Japanese stocks,
especially the Topix index, is lagging behind markedly,'' said Hiroichi Nishi,
Nikko Cordial Securities Inc. equity manager. ''But this also means there will
be appetite to buy on the dip (next year) as investors believe the lag will
eventually be resolved.''
The TSE's total trading value for 2009 ended lackluster and was overtaken by
the Shanghai stock market, reflecting the shift by foreign investors away from
Japanese equities to emerging markets in other parts of Asia where strong
economic growth continues.
Stocks opened higher Wednesday as exporters advanced on the U.S. dollar's rise
above the 92 yen line. The level is stronger than exporters average assumed
rate of around 91 yen for the latter half of fiscal 2009, raising hopes for
improved competitiveness and repatriated overseas profits, brokers said.
''But Japan Airlines became the drag, adding to selling pressure from continued
profit-taking after the market's recent sharp gains,'' said Masumi Yamamoto, a
market analyst at Daiwa Securities SMBC Co. JAL nosedived about 24 percent, or
21 yen, to close at 67 yen amid growing fears among shareholders that the
cash-strapped carrier will be restructured in bankruptcy court.
JAL's tumble, down to an all-time low of 60 yen at one point, prompted
investors to quickly secure profits from overheating stocks such as
export-oriented auto and electronics shares, said Nikko Cordial's Nishi.
JAL was the day's volume leader and largest percentage decliner.
Daiwa's Yamamoto added that with most market participants already in ''holiday
mood,'' investors stayed tentative as they awaited moves next week, including
the TSE's launch of a new trading system and U.S. payrolls data.
On the First Section, declining issues overwhelmed advancing ones 1,235 to 323,
with 127 others remaining unchanged.
Resource-linked issues fell on lower gold and other commodity prices, with
trading house Mitsui losing 18 yen, or over 1 percent, to 1,311 yen.
Value leader Mitsubishi UFJ Financial Group shed 2 yen, or about half a
percent, to 452 yen.
Bucking the trend, Hitachi rose 10 yen, or almost 4 percent, to 284 yen after a
news report quoted its chairman and president as saying the firm will try to
return to the black next fiscal year. A separate report said it is set to win
up to 1 trillion yen worth of orders for rolling stock in Britain's express
railway project.
Tire maker Bridgestone gained 18 yen, or over 1 percent, to 1,626 yen on
expectations for higher demand for snow tires as the Japanese archipelago falls
under a cold spell.
Trading volume on the main section came to 1,706.66 million shares, up from
Tuesday's 1,571.31 million but still relatively thin.
The TSE's Second Section index was down 1.26 points, or 0.06 percent, to
2,066.36 on a volume of 32.41 million shares. On the Osaka Securities Exchange,
the near-term March Nikkei 225 index futures contract was down 110 points to
10,540.
The Tokyo market will be closed Thursday and Friday for the New Year's
holidays. When resuming trade on Monday, the TSE will be open for a full day,
instead of the customary half-day session, as it launches a new next-generation
trading system known as the Arrowhead.
==Kyodo
2009-12-30 21:30:00