Nissan Leads Auto Shares Higher on U.S. Stimulus Plan (Update2)
Nissan Leads Auto Shares Higher on U.S. Stimulus Plan (Update2)
By Makiko Kitamura
Jan. 25 (Bloomberg) — Nissan Motor Co., Japan;s third-
largest carmaker, led auto shares higher on the Tokyo Stock
Exchange after U.S. lawmakers agreed on a plan to boost consumer
spending in the company;s most profitable market.
Shares of Nissan rose as much as 7.1 percent, the most in
almost three months, to 1,007 yen and traded at 1,004 yen as of
the 11 a.m. trading break in Tokyo. Honda Motor Co. gained 5.9
percent to 3,250 yen while Toyota Motor Corp. added 5 percent to
5,500 yen.
The Bush administration and House lawmakers announced
agreement yesterday on an economic stimulus package that would
distribute rebate checks to 117 million families. The big three
Japanese carmakers rely on the U.S., the world;s biggest auto
market, for more than half of their earnings.
“The U.S. is of huge importance for the carmakers, so the
stimulus plan is spurring investor optimism,;; said Yoku Ihara,
head of equity research at Retela Crea Securities Co. in Tokyo.
The three largest Japanese automakers will gain greater
market share in the U.S. this year as consumers shift to compact
and fuel-efficient cars as gasoline prices rise, Fitch Ratings
said in a report on Jan. 21. Gasoline cost an average of $3 a
gallon in the U.S. yesterday, a 40 percent increase from a year
earlier.
Japanese carmakers; U.S. market share rose to 34 percent in
2006 from 28 percent in 2003, Fitch said. Toyota boosted global
sales 6 percent in 2007, helped by rising demand in North
America and Asia. The carmaker is locked in a dead heat with
General Motors Corp. in claiming the title of the world;s
largest automaker.
Under the U.S. stimulus plan, individuals would receive
rebates of up to $600 and couples could receive $1,200, plus
$300 per child. Rebates would be phased out for individuals
earning more than $75,000 and couples earning more than $150,000.
Treasury Secretary Henry Paulson said the rebate checks may be
mailed 60 days after the proposal becomes law, possibly in May.
To contact the reporter on this story:
Makiko Kitamura in Tokyo at
