Thursday, February 15, 2007

Tokyo consumer finance sector declines on profits warning

by Elaine Frei

Retail sectors advanced in Tokyo on Thursday after new gross domestic product figures showed that the Japanese economy grew at an annualized rate of 4.8 percent in the last quarter of 2006, above expectations of 3.8 percent growth for the quarter.  It is widely expected that the Bank of Japan will use the new report as an excuse to hike interest rates when it next meets.  The Nikkei 225 added 0.81 percent to 17,897.23, its highest close since May 2000.  The Topix index gained 0.65 percent to 1,776.71.

Department stores and general retail both were helped by the new data.  Among department stores, Marui added 7.28 percent to ¥1,533, while Mitsukoshi gained 7.75 percent to ¥584.  Takashimaya was 10.03 percent higher to ¥1,690.  Japan’s largest general retailer, Seven & I Holdings, was up 4.75 percent to ¥3,750.

The consumer finance sector, on the other hand, declined.  Orient dropped 19.41 percent to ¥191 after it said it expects to incur losses for the current fiscal year.  It blamed new, more stringent government rules on how much interest lenders can charger their customers for the anticipated narrowing of margins.  Acom dropped 0.88 percent on the session, to ¥4,480.

 

 

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