Japan's TOPIX up as banks rebound after sell-off
TOKYO, Nov 6 (Reuters) - Japanese stocks picked up some steam on Tuesday after dropping nearly 2 percent the previous session as bank shares such as Mitsubishi UFJ Financial Group (8306.T) regained some ground following a recent sharp sell-off.
But Chugai Pharmaceutical Co Ltd (4519.T) weighed on the market, sliding nearly 3 percent after it said it would halve this winter's supply of the influenza drug Tamiflu in Japan to a quantity sufficient for 6 million people. "Even if the market rises, it is limited within the realm of a rebound and it will not last. We have only negative news," said Yusuke Sakai, manager of equities trading at Mizuho Securities.
"The situation hasn't changed at all.... The fallout from the subprime problems must not be small as we face billions more in losses."
Citigroup (C.N) executives were unable to assure investors on Monday that a potential $11 billion write-down for subprime mortgages won't grow, and the bank's nearly pristine credit rating was downgraded. [ID:nN05258480]
As of 0058 GMT, the broad-based TOPIX eked out a 0.1 percent gain, rising 2.04 points to 1,577.17, after ending the previous session down 1.6 percent on widening credit fears.
The Nikkei .N225 was down 0.2 percent, or 28.81 points, at 16,240.11. On Monday, the benchmark logged its lowest close since Sept. 18.
BANKS REBOUND
Banking shares gained ground, with Mitsubishi UFJ up 2 percent at 1,037 yen, while Mizuho Financial Group (8411.T) climbed 2.6 percent to 604,000 yen and Sumitomo Mitsui Financial Group (8316.T) added 1.5 percent to 859,000 yen.
Chugai dropped 2.7 percent to 1,897 yen.
The Japanese partner of Roche Holding AG (ROG.VX) also said it was taking steps with Roche to investigate several incidents of reported abnormal behaviour of people taking Tamiflu -- incidents that prompted Japan's Health Ministry to restrict the use of the drug.
Another notable stock was Takeda Pharmaceutical Co Ltd (4502.T), which fell 0.9 percent to 7,040 yen.
Takeda lifted its annual profit outlook on strong sales of its Actos diabetes pill but failed to meet expectations and said little to dispel worries about a key cholesterol-lowering drug candidate. [ID:nT271056]
