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Date: Wednesday 14 May 2008
LONDON (ShareCast) - The Nikkei rose on Wednesday with exporters such as Honda, Canon and Fanuc in demand as the yen extended its fall against the dollar.
The benchmark Nikkei 225 rose 164 points to 14,118.
Financials took a hit after comments from Federal Reserve chairman Ben Bernanke that the economic environment is still “far from normal.”
Mitsubishi UFJ Financial also weighed on the sector on a report it could be hit by bigger than expected losses on security investments.
In other company news shares in NTT rallied after it said Tuesday that it will raise its dividend and will double last year's share buyback plan. It also forecast a decline in earnings this financial year.
Otherwise trading was fairly thin on the ground amid soaring oil prices and as the scale of China’s devastating earthquake unfolds.
The Hang Seng fell on Wednesday as shares in banking stocks like HSBC headed lower.
Hong Kong's Hang Seng index closed down 19 points at 25,533, off a low of 25,108.
Financials were generally under pressure following Ben Bernanke’s comments about the health of the US economy while insurers like China Life fell on concern about the impact of China’s recent earthquake.
PICC Property and Casualty and Ping An Insurance also fell.
Cement and steel firms were in demand as focus turned to upcoming reconstruction work in China's Sichuan province following Monday's devastating earthquake. China National Building Material and Chongqing Iron & Steel were among the risers.
Cathay Pacific Airways said its Dragonair unit carried 2.07m passengers last month up 7.2% year-on-year.