Japan stock market week to Sept 29, 2008

Tokyo continued its losing streak in the week to September 29 (four trading days because September 23 was a national holiday in Japan), influenced by further turmoil on the US financial sector with the bankruptcy of the largest savings and loan company. The Nikkei 225 ended off 2.9%, to close below the 12,000 level, while the Topix index fell 3.5%. Japanese investors worried about a possible delay in enacting the proposed bail-out of troubled financial institutions by the US government and the probability of its success. The news that, in August, Japan recorded the first trade deficit since November 1982 also discouraged players who generally retreated on sidelines. The pharmaceutical index rose 2.8%, outperforming the market.

Mitsubishi Tanabe leapt 8.3%, after it announced that a basic agreement was concluded at the end of September with the Japanese plaintiffs group to resolve the hepatitis C virus class action. The company and its subsidiary Benesis have been sued for damages by patients who claimed to have been infected with HCV due to the use of fibrinogen preparations and Chrismassin, the blood coagulation factor IX, manufactured and marketed by Green Cross, one of the predecessor companies. Cases being reviewed in courts will be terminated and the plaintiffs groups will disclaim the compensation. Mitsubishi Tanabe will examine specifics of benefit payments with the Ministry of Health, Labor and Welfare based on the HCV patients special relief law enforced in January. The company has booked a charge for the law suits of 11.2 billion yen ($106.4 million) in the fiscal year ended March, while it anticipates that the payment may change depending upon the examination of benefit payments.