Japan Stocks Fall on U.S. Inflation Concern; Sony, Canon Drop April 12 (Bloomberg) -- Japanese stocks fell after a jump in commodity prices increased concern that the U.S. Federal Reserve will keep raising borrowing costs in the world's biggest economy. Sony Corp. and Canon Inc. paced declines.
Crude oil rose to a seven-month high yesterday on concern a confrontation over Iran's nuclear program may disrupt shipments. ``There's greater concern now about further U.S. interest rate increases and that will damp the overall Japanese market,'' said Yutaka Miura, an equities manager at Shinko Securities Co. in Tokyo. ``Hi-tech and autos may fall on concern about reduced overseas demand.'' The Nikkei 225 Stock Average fell 174.7, or 1 percent, to 17,243.43 at 10:01 a.m. in Tokyo. The broader Topix index dropped 15.54, or 0.9 percent, to 1754.64. Exporters declined on concern higher borrowing and fuel costs will leave U.S. consumers with less to spend and curb corporate investment. Canon, the world's biggest maker of digital cameras, fell 80 yen, or 1 percent, to 8230. Sony, the world's second-biggest consumer electronics maker, fell 110 yen, or 2 percent, to 5460. Advantest Corp., the world's-biggest maker of memory-chip testing equipment, fell for a third day, declining 350 yen, or 2.4 percent, to 14,230 yen. Interest-rate futures show traders are certain the U.S. Federal Reserve will raise the overnight lending rate to 5 percent at its May 10 meeting. The odds of an increase to 5.25 percent at the following meeting in June have climbed to 52 percent yesterday, from no chance about two weeks ago. Investors More Optimistic Declines were limited after a Merrill Lynch & Co. survey yesterday said global investors became more optimistic about stocks in Japan this month amid prospects for profit growth in the world's second- biggest economy. ``Investors are more confident about Japan,'' David Bowers, chief global strategist at Merrill, said in London yesterday. Japanese consumer prices are likely to keep rising as more than seven years of deflation eases, Bank of Japan Governor Toshihiko Fukui said yesterday. Japan's core consumer prices, which exclude fresh food, rose 0.5 percent in January and February following back-to-back increases in November and December. Japan's central bank hasn't set a timetable for when interest rates will increase, Fukui added. The Cabinet Office is expected to maintain its view the Japanese economy is recovering in its monthly economic report for April due for release on April 14, the Nihon Keizai newspaper said. Exports are expected to be revised up for the first time in three months on the strength of shipments to the U.S., the paper said. The government report will indicate prices are improving though they remain in a deflationary condition, the same assessment as in March's report, the Nihon Keizai said. Japan's bank lending rose for the second month in March, gaining 0.3 percent in March from the same month a year earlier, a central bank report in Tokyo today showed. Lending adjusted for factors including currency fluctuations, securitizations and bad loan write-offs advanced 1.5 percent. Total lending by banks and credit institutions climbed 0.4 percent. Last Updated: April 11, 2006 21:05 EDT ------------------------ Yahoo! Groups Sponsor --------------------~--> GFT Forex Trading Accounts As low as $250 with up to 400:1 Leverage. Free Demo. http://us.click.yahoo.com/lpv1TA/jlQNAA/U1CZAA/zMEolB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/obrolan-bandar/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
