Date: Monday 05 Jul 2010
Japanese stocks were mixed but with a slightly firmer bias with consumer lenders the flavour of the day on press reports that Osaka is planning to relax tough new lending rules introduced nationally on 18 June.Shares in lender Acom, a unit of Mitsubishi UFJ, jumped by the maximum daily amount allowed by the Japanese trading system, as did sector peer Promise . Aifuland Takefuji also did well on the back of the report in the Mainichi newspaper.
Commercial lenders have been having a tough time of it late after the introduction of rules last month that cap interest rates and loan volumes. The lenders have responded by closing branches and laying off workers, but the Osaka government is reportedly considering allowing lenders based in Osaka to exceed interest rate caps and lending limits to borrowers also based in Osaka.
Exporters such as Canon, Sony and Panasonic tended firmer as the yen weakened. Also on the upturn was Sanyo Electric on rumours it is close to selling its computer chip unit.
The Nikkei 225 index rose 63 points to 9,266. By coincidence, Hong Kong’s Hang Seng index moved 63 points, but in the opposite direction, to 19,842.
Banks were friendless after Bank of China returned from suspension after announcing rights issue plans and HSBC’s chairman warned of fragile financial markets. Bank of China intends to raise around $8.9bn from its rights issue.Land and Resources Minister Xu Shaoshi thinks property prices are heading for a correction, according to the Securities Times. The news sapped demand for Chinese property developers such as Country Garden and Agile Property.
Trading volumes were light in numerous markets reflecting the fact that the US markets will be closed today for the Independence Day holiday.
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