Nikkei Gains 1.4%; Export Growth Slows

Chandrasekhar Atreya
27 Sep, 2010
New York City

Stocks in Japan rally after exporters gained following a surge in New York. Export growth slowed in August on the rising yen. Japan alleges that China started drilling at oil site in East China Sea unilaterally breaking the agreement to jointly explore the area.

[R]5:00 PM Tokyo, Japan – Stocks in Japan rally after exporters gained following a surge in New York. Export growth slowed in August on the rising yen. Japan alleges that China started drilling at oil site in East China Sea unilaterally breaking the agreement to jointly explore the area.[/R]

Japanese stocks surged on Monday buoyed by exporters after stocks in New York surged following a surprise gain in durable goods orders. The U.S. business spending increase lifted hopes that exports from Japan may sustain sales.

The Nikkei 225 Stock Average added 1.39% or 131.47 to close at 9,603.14. The broader Topix also climbed 1.3% to close at 849.30 with a little more than five times as many shares advancing as declining.

Of the Nikkei 225 stocks, 179 gained, 33 decreased and 13 were unchanged.

Sustained steel demand and other products in Asia pushed the overall exports up 15.8% in August from a year earlier to 5.224 trillion yen, a decline from the 23.5% rise in July, the Ministry of Finance said Monday.

Shipment of household appliances climbed 30.8% in August from a year ago to 194.5 billion yen, up for a third month in a row, the Japan Electrical Manufacturer’s Association said Monday.

Shipments of air-conditioners surged 108.7% to 67.7 billion yen while those of refrigerators jumped 14.7% to 46.5 billion yen, both up for a third month in a row because of the heat this summer.

Takefuji Corp said it is considering various steps to restructure itself, following a Nikkei Newspaper report that the Japanese consumer lender is preparing to file for bankruptcy.

Nikko Cordial Securities Ltd is set to become a sales agent for Sumitomo Mitsui Banking Corp, marketing the bank’s time deposits to individuals in regional areas, the Nikkei News reported Friday.

The two Sumitomo Mitsui Financial Group Inc members have filed for Financial Service Agency approval to enable Nikko Cordial, a 100% unit of SMBC, to serve as an agent for the bank.

China on Saturday demanded that Japan apologize and offer compensation for the detained Chinese fishing boat captain over collisions near the disputed Senkaku Islands, but Japan immediately rejected the call as unfounded.

Hitachi Ltd and Panasonic Corp plan to develop smart-grid systems that will make homes more energy efficient. By leveraging each other’s strengths, Hitachi’s control technology for power grids and Panasonic’s home energy-saving technology, the companies seek to establish a common protocol for data communications between power grids and households.

The companies plan to sell their smart-grid systems for urban development projects in emerging countries and around the world.

Domestic PC shipments increased in August for the 12th month in a row, up 27.6% from a year ago, the Japan Electronics and Information Technology Industries Association said Friday.

Shipment of desktop computers, which were popular among corporate customers, grew 28.7% to 263,000 units, while laptops sales rose 27.1% to 531,000 units.

A Japanese official said Friday that China appears to have started drilling for natural gas in an East China Sea claimed by both countries.

Japan has warned China that it would take countermeasures if Beijing began drilling. The countries agreed in June 2008 to jointly develop the gas field, known as Shirakaba in Japan and as Chunxiao in China.

Gainers & Losers

Nippon Soda Co led the gainers in the Nikkei with a rally of 4.48% to 350 yen followed by Sumitomo Electrical Industries Ltd 3.94% to 1,029 yen, Pioneer Corp 3.87% to yen, Itochu Corp 3.63% to 742 yen, Fujikura Ltd 3.43% to 422 yen and Komatsu Ltd 3.26% to 1,935 yen.

Shinsei Bank Ltd led the decliners in the index with a fall of 6.56% to 57 yen followed by Sumitomo Trust 3.39% to 428 yen, Chuo Mitsui Trust 3.06% to 285 yen, Resona Holdings 2.73% to 785 yen, Mizuho Financial 2.38% to 123 yen and SKY Perfect JSAT Holdings Inc 2.19% to 29,440 yen.