TOKYO MARKET; Analyst's credit fears force bond sales
Sunday 21 November 1999
Moody's implied Japan may be forced to issue more debt, leading the firm to downgrade its credit standing again.
During the week, the benchmark yield rose 10 basis points to 1.84 per cent. Wednesday was the one-year anniversary of the Moody's downgrade of Japan's credit rating to Aa1 from Aaa. Yet investors said that the impact of a further downgrade would be muted, compared with last year's move, as the market environment was much worse last year.
Japan's broad Topix index is poised to push past its 3.5 year high, led by telecoms shares such as Hikari Tsushin on the expectation that new funds will target these shares.
Oracle Corp Japan and other internet-related shares may also advance as SG Yamaichi Asset Management and four others prepare to start new funds, prompting some traders to buy ahead of its launch. "Mutual funds and traders will continue to be the main players," said Hajime Yagi, senior portfolio manager at Meiji Dresdner Asset Management. "IT issues are the theme at present."
The Topix index gained 3.1 per cent to close at 1,642.67.The benchmark Nikkei 225 stock index rose 1.7 per cent, to 18,570.84, during the same period.
Hikari Tsushin and other telecoms shares may extend. The Topix telecoms sub-index rose almost 60 per cent in the past eight weeks.
Asahi Life Asset Management will start Asahi Life Research Japan Stock Open and five other companies new funds at the end of November, including SG e-index Japan Fund by SG Yamaichi Asset Management.
Fund ABC by Daiwa Asset Management is also expected to attract a lot of money because its previous fund, "0101", started in September, has expanded its capital to Y350bn (pounds 2.04bn), more than 10 times its original size.
- 2 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
- 5 Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
King Salman: Just five days in, Saudi Arabia's new king has already overseen a beheading
Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Mafia's wall of silence broken: Victim of Cosa Nostra's extortion rackets in its Corleone heartland co-operates with authorities for the first time ever
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
Louise Mensch says 'F**K YOU' in explosive tweets about David Cameron, Saudi Embassy and the Queen over King Abdullah tributes
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...