WRAP Tokyo stock market falls after further loss in US, Hong Kong, analyst
(4 Mar 2009) SHOTLIST Tokyo, Japan 1. Wide of Tokyo Stock Exchange, tilt down to trading floor 2. Various of traders 3. Close of electronic board showing drop in Nikkei value 4. Close of electronic board 5. Wide of stock exchange lobby Hong Kong 6. Wide Hong Kong Stock Exchange trading floor 7. Wide electronic display showing index 8. Dealers 9. SOUNDBITE (English) Benjamin Pedley, Managing director, LGT Investment Management (Asia) "Well, I think the US market is not having as much of an impact on the Hong Kong market as it normally has. And I think the reason is that there is a belief that there is somewhat of a decoupling between US economy, US equity markets and what's happening here in Hong Kong. I think the belief is that we are likely to see China continue to drive economic growth to some extent in this region, and that's going to provide somewhat of a buffer for companies that are based in Hong Kong. So I think the news out of the US economy continues to be bad, I think that's factored into Hong Kong stock prices already, and people are looking with some optimism that China might be able to take up some of the slack from the slowdown in the US economy." 10. Dealer 11. Wide shot trading floor STORYLINE: Japanese stocks recovered on Wednesday, erasing early declines on new hopes that China will expand its economic stimulus measures. The benchmark Nikkei 225 stock average rose 61.24 points, or 0.9 percent, to 7,290.96, despite a fifth straight day in the red on Wall Street. The broader Topix index gained 0.7 percent to 732.04. In line with regional gains, the Nikkei turned up on speculation that Chinese officials planned to unveil new initiatives to bolster the world's third-largest economy at a legislative meeting starting on Thursday. Material and machinery companies soared on the news, with Hitachi Construction Machinery Co. up 7.4 percent at 1,213 yen and Komatsu Ltd. climbing 3.1 percent to 1,036 yen. The global financial crisis has taken a particularly heavy toll on Japan's export-driven economy, mired in one of its worst slumps since World War II. Last quarter, the economy shrank at its fastest pace in 35 years. Japan's Prime Minister, Taro Aso, is touting a one-time cash handout of 12-thousand yen, or about 120 US dollars per person, as the centrepiece of a stimulus package to revive the world's second largest economy. But polls show most Japanese oppose the idea, arguing that most people will just save the money, not spend it. Others say it's a shortsighted plan that exacerbates the government's ballooning budget deficit. Meanwhile, Hong Kong stocks were up 76.05 points, or 0.63 percent, to 12109.93 points on Wednesday morning. Benjamin Pedley, managing director of LGT Investment Management (Asia), said the US market wasn't having as much impact on Hong Kong markets as it normally does. "There is a belief that there is somewhat of a decoupling between US economy, US equity markets and what's happening here in Hong Kong," he said. He added that in Hong Kong, companies were looking to China to drive economic growth, and "people are looking with some optimism that China might be able to take up some of the slack from the slowdown in the US economy." Hong Kong bank giant HSBC is down about three to four percent, which came after the disappointing profits announced on Monday. Find out more about AP Archive: http://www.aparchive.com/HowWeWork Twitter: / ap_archive Facebook: / aparchives Instagram: / apnews You can license this story through AP Archive: http://www.aparchive.com/metadata/you...
