Japan’s Ministry of Finance reported on its web site today that the country’s foreign reserve assets increased by $11.9 billion at the end of January to $1 trillion at the end of February.

While foreign currency reserves reached $979 billion, the IMF reserve position stood at $1.3 billion.

Special Drawing Rights and Gold rose to $3.1 billion and $23.9 billion respectively.

Gainers & Losers

Kyowa Hakko led advancers in the Nikkei 225 index shares with a rise of 9.71% followed by gains in Shiseido Co. Ltd. of 2.71%, in Sanyo Electric of 2.63%, in Teijin Ltd. of 2.03%, and in Osaka Gas Co. Ltd of 2.01%.

Drugmaker Kyowa Hakko Kogyo Co. gained after Amgen Inc agreed to pay up to $520 million for rights to an experimental drug.

Kumagai Gumi Co. Ltd led decliners in the Nikkei 225 index shares with a drop of 11.11% followed by losses in Sumco Corp. of 10.80%, in Tokyu Land Corp. of 10.44%, in NGK Insulators of 9.52%, and in Alps Electric Co. Ltd of 8.42%.

Tokyo Land Corp. dropped after it was downgraded by Credit Suisse to “neutral” from “outperform”.

Other realty stocks fell on concern that credit markets will worsen after JPMorgan Chase & Co. said UBS AG UBS probably sold 25 billion francs of mortgage-backed securities in a ``fire sale ''''. Mitsubishi Estate Co tumbled 7.09% and Mitsui Fudosan shed 6.97%.

Financial stocks fell as well. Resona Holdings plunged 2.99% and Mizuho Trust & Banking edged down 3.70%.

Commodity stocks also fell on declining metal prices. Copper prices climbed down 2% in New York yesterday, while platinum fell 3.3%. Nippon Light Metals fell 2.53% on the news.

Pioneer Corp and Matsushita in tie-up

The Nikkei news reported yesterday that Pioneer Corp and Matsushita Electric Industrial Co. plan to co-develop plasma panels thereby widening a proposed business alliance centered on procurement.

Separately, Nikkei News reported today that Pioneer Corp. will probably report a net loss of 8 billion yen for the year through March 31, after taking a 20 billion yen charge to withdraw from the plasma TV business.

JFE to increase stake in Hitachi Zosen

The online edition also reported that JFE Holdings Inc. is pushing to acquire its 50-50 joint venture with Hitachi Zosen Corp. on expectations of massive overcapacity in East Asia''s shipbuilding industry.

Caterpillar to shore up stake in JV

The Chicago business reported yesterday quoting the Nikkan Kogyo newspaper that the world’s biggest maker of earthmoving equipment will spend 60 billion yen to raise its stake in Shin Caterpillar Mitsubishi-its joint venture with Mitsubishi Heavy Industries- from 50% to approximately 63%.

Shin Caterpillar Mitsubishi produces and sells hydraulic excavators, wheel loaders and bulldozers.