Gains in domestically focused banking and securities sectors pushed up Japan’s stock market on Friday. The Nikkei 225 rose 1.5 per cent to 15,404.05, while the Topix was up 1.4 per cent to 1,591.23. Investors shrugged off official figures released on Friday showing a downward revision in Japanese economic growth in the third quarter pointing out that both household spending and business investment were higher than previously thought. Banking rose 2.4 per cent. Mitsubishi UFJ, the world’s biggest bank by assets, was up 3.2 per cent to Y1,630,000. SMFG also rose 3.4 per cent to Y1,230,000. Mizuho rose 2 per cent to Y908,000, despite its post-trading admission on Thursday that it had accidentally placed an order to sell a huge number of shares in recruitment company J-Com. Mizuho Securities, its brokerage unit, estimated a loss of at least Y27bn. Securities houses bounced back on Friday morning, after suffering on Thursday from a lack of information about which securities company had placed the J-Com order. Nomura, Japan’s biggest securities house, rose 3.6 per cent to Y2,160. Daiwa Securities, its biggest rival, was up 3.4 per cent to Y1,263. Nikko Cordial, the smallest of the big three securities houses, was up 4.8 per cent to Y1,840.
Japanese Government Bonds front futures contract fell 29 ticks on the to close at 136.74 on rumors that Mizuho Securities which lost 225 Million dollars in a trading error was selling out big chunks of its portfolio. The yield on the benchmark 10-year JGB rose to close at 1.555% from 1.525% yesterday.