WEBODIGY Business & Finance Journal

Japanese stocks rose triggered speculation of foreign income will increase as the yen weakened to the lowest level against the dollar since August, following the comments of Finance Minister Naoto Kan.

Toyota Motor Corp.., Propdusen the world’s largest automaker, had gains of 2% after yesterday Kan said in his first day in office that he would rather see the yen weakened a little deeper. Sony Corp. rose 2%, Aeon Co. climbed 6.5% after a net loss decreased.

The Nikkei 225 Stock Average rose 1.1% to 10,795.12 at 9:46 pm in Tokyo, leading to the closing position of the highest since October 2008. Topix index climbed 0.7% to as low as 938.76, with the number of shares gained twice as much than the weaker.

Topix index climbed 5.6% last year, the smallest increase in the number of index references to the 40 largest stock markets in the world, sparked fears the government will not help economic growth and strengthening of the yen would hit profits. A number of stocks in the index traded at an average level of 37 times estimated earnings, compared with 15 times the Standard & Poor’s 500 in the U.S. and 13 times in the Dow Jones Stoxx 600 in Europe.

The yen weakened to as low as 93.77 against the dollar today from 92.20 at the closing stock trading in Tokyo yesterday. The weakening of the yen raised the value of overseas sales of Japanese companies when converted into the country’s currency.

The currency jumped to the highest in 14 years in November and 93.59 on the average level in 2009, the highest level within 1 year from free trade that currency began in 1971.

Toyota climbed 2% to as low as 3925 yen and is the largest contributor to the strengthening Topix. Sony rose 2% to 2797 yen positions, and Sharp Corp. climbed 1.5% to 1193 yen.

Aeon jumped 6.5% to 848 yen, its sharpest gain in the Nikkei 225, after losses in 9-month net shrank 66% compared to a year ago.

Elpida Memory Inc. gained 3.4% to 1735 yen positions after the Nikkei Home News reported that the company likely to get the first operating profit in 3 years. NEC Electronics Corp. rose 4% to as low as 777 yen, Tokyo Electron Ltd. 1.7% experienced a gain of 5980 yen

U.S. stocks rose for the third day after American International Group Inc. plans to pay off debts to the government and manufacturing data and economic indicators lead to the end of the recession.

AIG shares rose 21% to be the best in the Standard & Poor’s 500 Index after CEO Robert Benmosche said it could do something for the shareholders. Google Inc. shares rose 3.7% after entered by Goldman Sachs Group Inc. to the group ‘conviction buy’. For Prudential Financial Inc added 4.3% after FBR Capital Markets recommends buying the stock.

S & P 500 rose 1.1% to 1007.37 at 4:05 p.m. in New York. Dow Jones Industrial Average rose 70.89 points, or 0.8% to 9350.05. Four stocks rose for every decline in the New York Stock Exchange.

AIG’s shares rocketed 21% to U.S. $ 32.30 after Benmosche said in an interview in Croatia that one day it can afford to pay the debt to the government and hoped to do something for the shareholders.

Last year, AIG agreed to convert almost 80% of shares to the government to get a bailout. Rescue including the provision of credit of U.S. $ 60 billion, investing up to U.S. $ 70 billion, and U.S. $ 52.5 billion to buy mortgage assets that are guaranteed by insurance.

Google shares rose 3.7% to U.S. $ 460.41 after Goldman Sachs put it into conviction buy list following the growth expectations in Europe and high income driven by increased consumer spending.

Prudential Financial Inc., the second largest life insurance in the U.S., grew 4.3% to U.S. $ 48.09, led the increase in shares of financial groups in the S & P 500 by 2.6%.

Japan Airlines (JAL) shares was recorded again vanish in Tokyo trading after the largest airline bankruptcy of Japanese origin.

As reported by AFP on Saturday (9/1/2010), observed JAL shares plummeted 11.8 percent and closed at the level of 67 yen per share. The Japanese government is currently trying to save JAL from bankruptcy with guaranteed support from the public to continue to run this flight.

Minister of Transportation of Japan, Seiji Maehara also reportedly has met with Finance Minister Naoto Kan on Friday with a party that would restructure the JAL Enterprise Corp. Turnaround Initiative.

But unfortunately, the Japanese Government refused when JAL has been bankrupt. But on the one hand, the government rejected the bankruptcy administration process, which can help the process of restructuring JAL is likely to leave its investors.

“We want the Turnaround Enterprise Initiative Corp. JAL can rebuild by using funds from the public,” said Maehara.

The plan of this penyelematan new airline will be decided on January 19 next, which will use the rescue package from bankruptcy. Reportedly, the process of saving them will require funds of 300 billion yen, equivalent to $ 3, 2 billion. These investment funds will be used to accommodate the bankruptcy JAL by asking the lender to seek a loan of 300 billion yen.

JAL has been known to borrow funds from the government since 2001 to finance the company’s debts are accumulating. In addition, the company loses approximately $ 1, 5 billion during the six-month period is also planned to cut thousands of workers and reduce flight routes as part of a way to restore the company’s profits.

For information, JAL may cut more than 10,000 employees and recorded a restructuring of their debt financing of 1.13 trillion yen as of March 31 next year on year. JAL also has offered to finance their debt by American Airlines and Delta Air Lines, where the two companies have competed for this Japanese company and will expand in Asian markets.

On the other hand, the media reported when JAL advised to collaborate with Delta and joined the Global SkyTeam, Oneworld and leaving group which also has American Airlines. Nevertheless, Wall Street Journal reported this week when American Airlines raised their investment offer from USD300 million to USD1, 4 billion.

Among the shares expected to see active trade in Wednesday’s session are those of Bed Bath & Beyond Inc., Family Dollar Stores Inc. and Monsanto Co.

Bed Bath & Beyond (BBBY 38.69, +0.02, +0.05%) is expected to report third-quarter
earnings of 44 cents a share, according to a consensus survey by FactSet Research.

Family Dollar (FDO 27.70, +0.21, +0.76%) is projected to post earnings of 47 cents a
share in the first quarter, according to a survey by Thomson Reuters.

Monsanto (MON 85.20, -0.07, -0.08%) is forecast to break even in the first quarter,
according to FactSet Research.

Worthington Industries Inc. (WOR 13.87, -0.01, -0.07%) is likely to post earnings of 7 cents
a share in the second quarter, according to a FactSet survey.

After Tuesday’s closing bell, Beazer Homes USA Inc. (BZH 5.00, -0.42, -7.75%) said it will
launch a secondary offering of stock and notes. The home builder said it will issue 18 million shares of common stock and $50 million in convertible notes. Underwriters will get 15% more shares and notes to cover overallotments. Separately, Beazaer said that new home orders rose 36.6% to 728 and closings increased 8% to 961 homes for the quarter ended Dec. 31.

Mosaic Co. (MOS 62.90, -0.25, -0.40%) said its fiscal second-quarter profit fell to $107.8
million, or 24 cents a share, from $959.8 million, or $2.15 a share, in the year-ago period. Revenue fell to $1.71 billion from $3.01 billion last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 39 cents a share on revenue of $1.67 billion.

Global stock markets began the New Year on a positive note as investors counted on a strong recovery from the worst economic slump since the 1930s to extend substantial gains made in 2009, dealers said.

They said strong Chinese manufacturing data showing the world’s third largest economy clearly on the mend bolstered hopes that the worst of the downturn is well and truly over, with the despair and uncertainty of 12 months ago fading into memory.

A similarly positive US manufacturing sector report later in the day gave Wall Street a solid early boost, reinforcing the more positive outlook.

Financial markets appeared on the brink of collapse in late 2008 with the failure of US investment banking giant Lehman Brothers but sentiment turned in March last year as the first “green shoots” of recovery were seen after huge state stimulus programmes.

Dealers said the big question now is whether the momentum can be sustained as governments wind down their costly rescue programmes.

In New York, the Dow Jones Industrial Average of leading shares was up 1.57 percent at around 1700 GMT, with the tech-heavy Nasdaq composite gaining 1.78 percent.

“There is a bullish bias that is often associated with the start of a new year as new money gets put to work, riding the wave of typically upbeat forecasts,” said Patrick O’Hare at Briefing.com.

In Europe, Paris was the main feature, topping very strong resistance at 4,000 points as investors pushed the CAC 40 up 1.97 percent to 4,013.97 points, its best finish since October 2008.

“Everybody was expecting it and finally it happened,” said Xavier de Villepion of Global Equities, adding that investors will be closely looking at upcoming US data to confirm they are on the right track.

London’s FTSE 100 index of leading shares rose 1.62 percent to 5,500.34 points while in Frankfurt the DAX added 1,53 percent to 6,048.30 points.

Dealers said that apart from the data, European stocks got an additional boost from news that Swiss pharmaceutical giant Novartis was to spend nearly 40 billion dollars to take over the world’s biggest eye-care firm Alcon from Nestle.

James Hughes, Market Analyst at CMC Markets, said that after a positive opening, the US manufacturing data gave investors another boost.

“Shares managed to add to this morning’s gains … after a strong start on Wall Street. The (US) ISM manufacturing numbers seemed to be a catalyst, as was a surge in the oil price,” Hughes said.

The US manufacturing sector in December expanded at its fastest pace since April 2006 as factories ramped up production to make up for a massive drawdown in inventories, the Institute for Supply Management said.

The ISM purchasing managers index climbed to 55.9 percent in December from 53.6 percent in November, well above analyst forecasts for a rise to 54.3 percent. Any number above 50 percent indicates growth.

“Overall, the December survey points toward sturdy growth in manufacturing industrial production,” said Ryan Sweet at Moody’s Economy.com.

Elsewhere in Europe, Amsterdam gained 2.30 percent, Brussels was up 2.08 percent, Madrid rose 1.72 percent and Swiss stocks put on 1.31 percent.

London and Paris each gained more than 22 percent in 2009, with Frankfurt up nearly 24 percent.

In Asia early Monday, Tokyo struck 15-month high, buoyed by government plans to expand a credit line to troubled Japan Airlines, with the benchmark Nikkei-225 index jumping 1.03 percent to 10,654.79 points — the best finish since early October 2008.