Itochu Corp. led advancers of the Nikkei 225 index shares with a rise of 6.15% followed by rises in Konami Corp. of 5.54%, in Yahoo Japan Corp. of 5%, in Japan Tobacco of 4.91%, and in Denki Kagaku of 4.23%.

Mitsubishi Rayon Co. led decliners of the Nikkei index shares with a fall of 17.14% followed by rises in Olympus Corp. of 13.89%, in Sapporo Holdings of 6.87%, in Konica Minolta Holdings of 6.81%, and Sumitomo Realty of 6.09%.

Asian Markets

In Tokyo Nikkei 225 Index closed lower 114.20 or 0.82% to 13,745.50, in Hong Kong Hang Seng index decreased 223.38 or 0.89% closed to 24,808.70, in Australia ASX 200 index lower 74.50 or 1.27% to close 5,792.90.

In South Korea Kospi Index increased 6.44 or 0.38% to close at 1,696.57, in Thailand SET index closed lower 3.88 or 0.48% to 807.68, and Indonesia JSE Index edged increased 2.62 or 0.10% to 2,704.25. Sensex index in India increased 2.84 or 0.02% to 18,663.16.

3:00AM New York, 7:00PM Sydney- Australia increased rates by 0.25% to 7%.

ASX 200 index lost 1.3% or 74.5 to close at 5,792.90.


The Preliminary market turnover was 1.59 billion shares worth $5.47 billion, with 422 stocks moving up, 765 stocks moving down and 344 unchanged.

Reserve Bank of Australia Hikes Rates

The Reserve Bank of Australia lifted the official cash rate by 25 basis points to 7%. The accompanying statement from the Governor Glenn Stevens suggested that the inflation is running above the bank’s target. The statement highlighted, “But given the extent of pressure on capacity and the build-up in inflation, a significant slowing in demand from its recent pace is likely to be necessary to reduce inflation over time.

The Board took careful note of recent events abroad and developments in financial markets. The world economy is slowing and it now appears likely that global growth will be below trend in 2008. Recent trends in world commodity markets suggest, however, that Australia’s terms of trade are likely to rise further.”

Australia''s largest mortgage lender, Commonwealth Bank of Australia and others immediately passed the increase in rates to borrowers. The bank lifted the 12-month introductory rate available to new customers on its TeleNet Saver and Business Telenet Saver by 30 basis points each to 7.50% and 7.15% respectively.

National Australia Bank said it had not yet decided whether to lift its interest rates. BankWest lifted the interest rates on its deposit products after the RBA''s announcement.

News Corp Earnings

News Corporation today reported second quarter net income of $832 million or $0.27 per share compared to $822 million or $0.26 per share on a diluted combined basis in the second quarter a year ago.

Revenue in the second quarter increased to $8.59 billion from $7.844 billion, an increase 0f 9%. For the first half revenue increased to $15.6 billion from $13.75 billion and earnings increased to $1.56 billion from $1.665 billion.

Cable Network Programming operating income up 23% despite launch costs for the Fox Business Network and the Big Ten Network. Growth was led by gains at the Fox News Channel, the Regional Sports Networks and Fox International Channels.

SKY Italia generated operating income of $62 million, an improvement of $74 million versus a year ago, reflecting net subscriber additions of 400,000 over the past 12 months as the subscriber base expands to 4.43 million.

Television operating income more than doubled, increasing $133 million, as ratings improved and increased pricing fuel advertising growth at the FOX broadcast network.

Filmed Entertainment delivered operating income of $403 million on strength of home entertainment titles and successful theatrical release slate.


Qantas Averts Strike