Tuesday, February 20, 2007

Investors await Bank of Japan decision

by Elaine Frei

As the Bank of Japan began its two days of meetings ahead of announcing a new decision on interest rates, the Nikkei 225 closed even Tuesday at 17,939.12, while the Topix index added 0.2 percent to 1,782.73.  Investors remained cautious ahead of the Bank’s announcement, scheduled for Wednesday, while analysts were divided over whether rate would go up or not.  The banking sector fell 0.2 percent amid uncertainty over what the Bank will decide.

Bids news was in focus.  In the automobile manufacturing sector, the news that Volvo (Stockholm Stock Exchange: VOLV A, VOLV B; NASDAQ: VOLV) will acquire Nissan Diesel Motor (TYO: 7210) produced so many buy orders at ¥523, 18.1 percent higher than at the close on Monday, that the company’s shares did not trade on the session.

In the steel sector, Nippon Steel (TYO: 5401) added 2.6 percent and Nakayama Steel Works (TYO: 5408) was 6.6 percent higher after Nippon said that it has increased its stake in Nakayama to 8.72 percent.  Nippon closed at ¥785, while Nakayama ended the session at ¥501.  Elsewhere in the sector, Sumitomo Metal Mining (TYO: 5405) gained 4.1 percent to ¥1,890, while Japan Steel Works was up 7.4 percent to ¥1,214.

EAccess (TYO:9427) was 6 percent higher to ¥83,000 after its mobile phone division said it would start offering wireless data services at the end of March.

 

 

 

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