Stock market fixing:
Nikkei 225 - 244.13 (-2%) 12,102.50
Topix - 29.66 (-2.5%) 1,162.72
DAX 30 -31.42 (-0.51%) 215.44
САС 40 -34.59 (-0.81%) 4249.07
FTSE 100 -47.80 (-0.89%) 5318.40
Dow +164.79 (+1.49%) 11433.71
Nasdaq +29.52 (+1.32%) 2258.22
S&P +17.01 (+1.38%) 1249.05
10YR +1/32 3.63% 103 1/32
Japan stocks tumbled, sending the Topix index to the brink of a
three-year low, on concern falling asset values will batter global
financial companies and the slowing economy will reduce manufacturing
investment.
Nomura Holdings Inc., Japan's biggest brokerage, sank
5.9 percent after Lehman Brothers Holdings Inc. posted a record loss.
Mitsubishi Heavy Industries Ltd. led equipment makers to the lowest in
three years after machine orders declined. Mazda Motor Corp. plunged
the most in seven years after the euro strengthened against the yen,
reducing the value of its European sales.
Lehman, the fourth-biggest
U.S. brokerage, yesterday reported a $3.9 billion third-quarter loss,
the biggest in its 158-year history. That helped push global writedowns
and credit losses caused by the collapse in the U.S. mortgage market to
$511 billion, according to figures compiled by Bloomberg News.
Nomura
slid 5.9 percent, the most since Sept. 18, 2007, to 1,440 yen, while
Shinko Securities Co. sank 6.6 percent to 299 yen. Mizuho Financial
Group Inc., Japan's second-biggest publicly traded bank, retreated 5.3
percent to 445,000 yen, and Resona Holdings Inc., the fourth largest,
plunged 9.7 percent to 106,600 yen, after having gained 26 percent in
the past three days.
European stocks fell for a third day as
concern deepened the economic slowdown will hurt earnings for retailers
and financial firms.
Home Retail Group Plc sank 5.7 percent after
the home- improvement chain reported lower sales. William Morrison
Supermarkets Plc tumbled the most in four years as Chief Executive
Officer Mark Bolland said he expects ``a tough second half.'' Bank of
Ireland Plc dropped 7.8 percent after Dresdner Kleinwort predicted
bad-debt levels for the country's lenders may increase. Barclays Plc
and Dexia SA slipped for a second day.
Home Retail slumped 5.7 percent to 228 pence, the steepest drop since July 11.
Bank
of Ireland slid 7.8 percent to 5.09 euros after Dresdner cut its
recommendation for the Dublin-based lender to ``sell'' from ``reduce.''
Allied Irish Banks Plc lost 3.1 percent to 7.85 euros after the
brokerage downgraded the nation's largest lender by market value to
``sell'' from ``hold.''
Barclays, the U.K.'s third-biggest bank,
fell 2.3 percent to 338.5 pence, while Dexia, the world's largest
lender to local governments, slipped 3.3 percent to 10.29 euros in
Brussels.
U.S. stocks advanced as transportation companies rallied on
lower oil prices, while banking shares staged a comeback in the last
half hour of trading on speculation Lehman Brothers Holdings Inc. will
be bought.
The Standard & Poor's 500 Index rebounded from a 1.7 percent
retreat and financial shares reversed a tumble of 4.2 percent to end
the day 1.5 percent higher. CSX Corp., the third-largest U.S. railroad,
climbed 11 percent and led the S&P 500 Transportation Index to its
biggest gain since July as crude declined and the carrier raised its
2008 earnings forecast. Washington Mutual Inc. and Wells Fargo &
Co. led the gain in lenders as prospects of a Lehman takeover eased
concern of more bank failures.
The S&P 500 added 17.01 points, or 1.4 percent, to 1,249.05. The
Dow Jones Industrial Average jumped 164.79 points, or 1.5 percent, to
11,433.71, erasing a 170-point drop. The Nasdaq Composite Index
increased 29.52, or 1.3 percent, to 2,258.22. About three stocks rose
for every two that fell on the New York Stock Exchange.
In early trading, the S&P 500 fell below its lowest closing level
since 2005 as Lehman slumped as much as 48 percent and dragged down all
87 financial companies in the index. Financial shares erased their drop
as people with knowledge of the situation said other firms were
reviewing Lehman's books in preparation for a possible takeover bid.
The Wall Street Journal reported that Bank of America Corp. is among
potential suitors.
Fuel refiners Valero Energy Corp., Tesoro Corp. and Sunoco Inc. made up
three of the top eight gains in the S&P 500 after the so-called
crack spread on refining profits increased more than 35 percent. The
spread is the hypothetical profit margin for processing three barrels
of crude into two barrels of gasoline and one of heating oil.
A drop in crude and a rise in gasoline prices spurred the gain in the
crack spread as some Texas refineries shut down to avoid damage by
Hurricane Ike, expected to make landfall this weekend.
Valero jumped $2.13, or 6.9 percent, to $33.03. Tesoro rallied $1.53,
or 9.3 percent, to $17.98. Sunoco added $5.25, or 12 percent, to
$47.66.
