Nikkei 225 Fall, Hang Seng End Higher

Japan Stocks Fall a 3rd Day on Demand Concern; Insurers Rise

March 10 (Bloomberg) -- Japanese stocks fell for a third day, renewing the Nikkei 225 Stock Average’s 26-year low, on concern shrinking global demand and rising fuel prices will weigh on company earnings.

Sony Corp., which gets a quarter of its sales from the U.S., lost 2.3 percent after billionaire investor Warren Buffett said the U.S. economy “has fallen off a cliff.” Tokyo Electric Power Co. dropped 3.6 percent after crude prices rose. Takeda Pharmaceutical Co. fell 3.9 percent, extending yesterday’s 13 percent drop on concern U.S. approval of its diabetes drug will be delayed. Sony Financial Holdings Inc. surged 12 percent, leading a rally by insurers from a near six-year low.

The Nikkei 225 retreated 31.05, or 0.4 percent, to close at 7,054.98 in Tokyo, bringing its three-day drop to 5.1 percent. The measure yesterday closed at the lowest since Oct. 6, 1982, when it reached 6,974.35. The broader Topix index fell 7.03, or 1 percent, to 703.50.

Financial companies “have been oversold, even though the nation’s banking system is relatively unscathed,” said Shinkin Asset’s Fujiwara. “The government needs to present effective economic plans promptly, rather than supporting the market.”

Nikkei futures expiring in March dipped 0.1 percent to 7,040 in Osaka and retreated 0.1 percent to 7,045 in Singapore.















HK Shares End Higher Led By HSBC, Oil Cos; Weakness Expected

(Dow Jones)--A big jump in HSBC on bargain hunting, helping it recoup some of its massive losses Monday, and gains in oil firms on rising crude prices led Hong Kong shares to a sharply higher close Tuesday. The Hang Seng Index rose 349.47 points, or 3.1%, to 11,694.05 after trading between 11,542.88 and 11,747.11. Turnover fell to HK$33.49 billion from HK$35.79 billion Monday. Analysts said they don't believe the blue-chip index's gains are sustainable, however, because of continuing concerns about the global economic downturn.

They said they expect the index will soon breach its five-year-low of 10,676 hit Oct. 27. ICEA Securities strategist Ernie Hon said he expects the index to come under renewed downward pressure this week. 'Given weakness in overseas markets, we're heading to a retest of last October's low in the short term,' Hon said. HSBC was the day's biggest blue-chip gainer after it slid 24% Monday to its lowest close since August 1995, as investors sold down the U.K. lender ahead of its US$17.7 billion rights issue later in the week.

UOB KayHian director Steven Leung said he expects the Hang Seng Index to trade between 11,000 and 12,000 in the short term. 'It will be difficult for HSBC to recover back above the HK$40.00 level in the near term and this means the Hang Seng Index is unlikely to regain the 12,000 mark,' Leung said.