Inpex rose after crude oil prices for February delivery reached a record $100.09 per barrel on falling U.S inventories, persistent Middle East tensions, and no signs of a decline in demand from China, India, and the U.S.

Sumco Corporation led decliners in the Nikkei 225 index with a fall of 9.9% followed by losses in Nissan Motor Corporation of 9.2%, in Mazda Motor Corporation of 7.7%, in Mizuho Trust & Banking of 7.7%, and NGK Insulators of 7.6%.

Nissan Motor Corporation fell after it reported that the U.S. sales in December dropped 2.4%.

Shipping lines fell after the Baltic Dry Index, which gauges prices, slumped for the nine days in a row by 1.5% as China scaled back its iron ore imports. Kawasaki Kisen declined 7.10% and Mitsui OSK Lines plunged 5.40%.

Exporters also declined after the yen weakened from 109.39 to 109.40 against the dollar. Canon Inc climbed down 5%, Sony Corporation edged down 6.61% and Casio Computer declined 6.08%.

The Asahi newspaper, on its online publication, reported today that IHI Corp is investigated by the Securities and Exchange Surveillance Commission for falsifying earnings report. The company is expected to be fined 1.7 billion yen if proven guilty of wrongdoing.

IHI Corp in December announced significant revisions in the company’s earnings report for the fiscal year ended March 2007 as well as in the six-month period ended September 2006.

SESC officials are reportedly paying special attention to capital increases totaling 64 billion yen that IHI reported in January and February 2007.

Bloomberg news service reported today that Takeda Pharmaceuticals Company applied to the U.S. Food and Drug Administration to sell Alogliptin as a daily treatment for type-2 diabetes. The new drug is poised to replace Astos and hedge against future losses when Astos pills patent expires in 2011.

Analysts believe the new drug might begin selling in 2009, generating $2 billion per year. Takeda closed down 6.9%.

Nippon Telegraph and Telephone fell on Nikkei News reports the company will cut leasing fees for its fiber optic lines by 7% for the fiscal year starting April. Spokesman for regional unit NTT East Corporation Masaya Suzuki and Yasuhiro Lida for NTT West said they will file proposed new rates with the telecommunications industry by January 15.


5:00AM New York, 9:00PM Sydney- ASX 200 index gained 0.3% after gains in resource stocks

ASX 200 index gained 0.2% or 12.80 to close at 6,385.40.

The Preliminary market turnover was 1.61 billion, worth a total $3.77 billion, with 640 stocks moving up, 549 moving down, and 336 unchanged.

The most actively traded stock was Gondwana Resources with 131.7 million shares worth $3.3 million.

National Australia Bank Ltd and Australia & New Zealand Banking Group Ltd set the tone for other banks by becoming the first two banks to respond to the global credit market turmoil by increasing their interest rates on mortgages to recover higher funding costs, without action from the central bank.

Australia's biggest lenders last raised home loan rates without any action from the central bank over ten years ago. National Australia Bank hiked its variable rate for home loans by 12 basis points to 8.69% while ANZ, raised the borrowing charge for some of its products by 25 basis points to 8.44% and 8.54%.

The central bank last increased its key rate by a quarter of a percentage point, or 25 basis points in November resulting in its benchmark rate rising to an 11-year high of 6.75% as it sought to stem inflation after concerns that the economy's expansion was likely to be inflationary.

Westpac and Commonwealth Bank of Australia officials said the two banks were also reviewing their charges. National Australia Bank gained 1%, ANZ rose 0.3%, Commonwealth gained 0.5% percent and Westpac banking was up 0.2%.