Nikkei rises 1.1 percent on Fed rate cut

Business Materials 17 December 2008 11:07 (UTC +04:00)

The Nikkei average rose 1.1 percent on Wednesday, with banking stocks among the biggest gainers after the U.S. Federal Reserve slashed borrowing costs to a record low, prompting a rally on Wall Street, reported Reuters.

But Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz) tumbled more than 4 percent on expectations that it will likely issue its third profit warning of the year on Wednesday, after abruptly moving up its year-end news conference by two days. The news conference is now set for 3 p.m. The benchmark Nikkei .N225 added 91.14 points to 8,659.16, after rising over 2 percent earlier. It fell 1.1 percent the previous day.

The broader Topix .TOPX gained 0.9 percent to 836.13.