Tokyo,
Bloomberg 09/9/11 - Japanese stocks rallied for two days stoppers,
extending losses for a week, on prospects that European finance chiefs
will face an international call today to tackle the debt crisis of the
region before the meeting of Group of Seven countries.
Fanuc Corp., fell 7.6 percent, contributed the largest decline in the Nikkei 225 Stock Average, after yesterday's report showed growth in machinery orders in Japan slowed. Toyota Motor Corp., the world's largest automaker, lost 0.7 percent. Marubeni Corp rose 3.2 percent and Toyota Tsusho Corp. rose 1.8 percent after Nikko Securities SMBC Inc. improve the ranking of these shares trade on the corporate sector.
Nikkei 225 Stock Average fell 0.6 percent to 8,737.66 at the close of trading at 3:00 pm in Tokyo. Topix fell 0.2 percent to 755.70. For the week, the Nikkei fell 2.4 percent, while the Topix lost 1.8 percent.'Investors want to avoid the risk ahead of the G-7 meeting this weekend,' said Kenichi Hirano, general manager and strategist of Tachibana Securities Co. in Tokyo. 'They closed position to lock in profits from the rally for two days. "
European Central Bank President Jean-Claude Trichet refused to cut interest rates even after saying 'downside risks' for the euro area has increased. Economy is facing "uncertainty is very high," Trichet said at a press conference in Frankfurt yesterday. The ECB cut its growth forecast for this year and next.
Japanese stocks before swinging between gains and losses after U.S. President Barack Obama called on Congress to pass the work plan that will inject $ 447 billion into the economy in order to drive the growth.'Obama's policy speech at the end rather than a positive surprise, with limited impact to the market, "said Masaru Hamasaki, chief strategist who helps oversee the equivalent of $ 24 billion at Toyota Asset Management Co. in Tokyo. 'Policy makers have lowered the warning about inflation in Europe due to recent economic conditions. That is expected by the market. '
