Japan stock market week to Jan 5, 2009

Tokyo extended an advance in the three reporting weeks ended January 5. The Nikkei 225 was up 4.4%, recovering the 9,000 mark at the close for  the first time in two months, while the Topix index rose 3.4%. Over the  whole of 2008, Tokyo posted a year-on-year 42.1% plunge, while the  pharmaceutical sector outperformed the market with a 20.5% decline,  signifying its defensive nature. During this review period, stocks moved  in a relatively narrow range as a result of calmness in currency  exchanges and a dearth of players due to the holiday season. Investors  continued to worry that major Japanese companies might revise downward  their full-year earnings guidance on the reporting of third-quarter  results at end-January. However, some believe such anxieties have  already been priced in. On the positive side, investors expected that  the economic stimulus package to be presented by the new US  administration could help improve the American economy. The  pharmaceutical index ended up 4.3%, performing in line with the market.