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Mitsubishi UFJ Financial Group, Inc. Message Board

  • bluecheese4u bluecheese4u Dec 19, 2007 12:03 AM Flag

    Japan's Topix Rise on Report Banks May Reject Fund Contribution

    Japan's Topix Rise on Report Banks May Reject Fund Contribution

    By Pavel Alpeyev and Kotaro Tsunetomi

    Dec. 19 (Bloomberg) -- Japan's Topix index advanced for the first time in six days, led by Mitsubishi UFJ Financial Group Inc., on speculation the country's top three banks will refuse a request by U.S. counterparts for a credit-line contribution to a subprime-asset bailout fund.

    Sumitomo Mitsui Financial Group Inc. has been asked to provide as much as $5 billion to the fund, and its two largest competitors Mitsubishi UFJ and Mizuho Financial Group Inc. also received requests.

    Shareholders of Sumitomo Mitsui, Japan's third-largest publicly traded bank, won't accept the bank contributing to the fund, the Mainichi newspaper reported today.

    ``With the bailout fund the U.S. banks are creating there's no way of choosing where your money goes and you don't have a high guaranteed return,'' said Fujio Ando, who helps oversee about $1 billion in Asian equities as managing director at Chibagin Asset Management Co. in Tokyo. ``There's no way shareholders can consent to that kind of investment, so if the reports are true it's a positive development.''

    The Topix gained 5.11, or 0.4 percent, to 1,474.88 as of 10:56 a.m. in Tokyo. The Nikkei 225 Stock Average was little changed at 15,206.22. The broader Topix advanced for the first time since Dec. 11.

    Mitsubishi UFJ and Mizuho also gained after Credit Suisse Group raised its rating on both banks to ``outperform'' from ``neutral.''

    Advances were bolstered by speculation an injection of $500 billion into the financial system by the European Central Bank will help sustain growth in the global economy. The ECB's record injection helped assuage concern a slowdown in bank lending will crimp company profits.

    Steelmakers Gain

    Nippon Steel Corp., Sumitomo Metal Industries Ltd. and Kobe Steel Ltd. advanced after Nippon Steel, the world's second- biggest maker of the alloy, said it's considering closer ties with its two rivals.

    Sumitomo Mitsui climbed 18,000 yen, or 2.2 percent, to 848,000. Mitsubishi UFJ, Japan's largest bank by market value, rose 20 yen, or 1.9 percent, to 1,062 in Tokyo. Mizuho, the country's second largest, gained 9,000 yen, or 1.7 percent, to 545,000.

    Nippon Steel, the world's second-largest steel producer, rose 22 percent, or 3.6 percent, to 638, headed for its biggest gain this month. today. Nippon Steel will spend about 50 billion yen ($441 million) to buy more shares of its rivals, the Nikkei newspaper reported earlier, without saying where it got the information.

    JFE Holdings Inc., the world's third-largest steelmaker, gained 230 yen, or 4.4 percent, to 5,410. Nisshin Steel Corp. climbed 10 yen, or 2.6 percent, to 390.

    Hitachi Ltd., Japan's second-biggest plasma television maker, rose 7 yen, or 0.9 percent, to 791, after the Nikkei newspaper said Matsushita Electric Industrial Co. and Canon Inc. may buy stakes in Hitachi's display subsidiary.

    Nikkei futures expiring in March gained 0.4 percent to 15,230 in Osaka and 15,240 in Singapore.

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