Japan Current Account Surplus Widens 24%; Acom, Daikin Fall

Nigel Thomas
09 Nov, 2010
New York City

Stocks in Tokyo trading declined as the yen hovered near recent highs and companies report mixed earnings. Current account surplus in September soared 24% as exports surged 16%. Acom Co lowered its full year outlook and Isetan Mitsukoshi net plunged 90%.

[R]5:00 PM Tokyo – Stocks in Tokyo trading declined as the yen hovered near recent highs and companies report mixed earnings. Current account surplus in September soared 24% as exports surged 16%. Acom Co lowered its full year outlook and Isetan Mitsukoshi net plunged 90%.[/R]

Stocks in Tokyo edged lower after rising for five days in a row when it chalked up nearly 6% of gains. The indexes struggled as the yen advanced against the euro and the dollar ahead of G20 meeting this week.

Nikkei 225 Stock Average declined 0.4% to 9,694.49 and the Topix fell 0.2% to 839.95. The yen advanced as high as 80.71 against the dollar but closed in Tokyo trading at 80.92.

The yen continues to trade near 15-year high and the prospect of a resolution at the upcoming 2-day meeting of G20 nations is unlikely. Increasingly the U.S. Federal Reserve’s decision to add $600 billion to the money supply is seen as inflationary by the emerging nations.

Current account surplus increased 24% in September to 1.96 trillion yen or $23 billion as exports increased 16% and imports rose 11%.

Stock Movers

Stocks generally traded lower. Electronics makers led the decliners and automakers and industrials were also weak.

Acom Co declined 2.1% t 840 yen and estimated full year net loss of 50 billion yen compared to previous estimate of 26.2 billion yen.

Daikin Industries Ltd declined 1.3% to 2,972 yen and lowered its full year net to 25 billion yen from 37 billion yen. The company also increased dividend to 18 yen from 16 yen a year ago.

Fanuc Ltd declined 1% to 12,300 yen and Olympus Corp dropped 4.2% and led the decliners in the Nikkei index.

Toyota Motor Corp fell 0.4% and Inpex Corp declined 2.2%. Automakers are facing an uphill battle as the dollar hovers near 80 yen.

Isetan Mitsukoshi Holdings Ltd said net in the first half ending in September declined 90% on lower apparel sales.

Panasonic Corp declined 1.8% to 1,191 yen and Sony, Citizen Holding, Honda and Nissan declined as well.

Rakuten Inc increased 0.6% to 62,700 yen after the Internet based retailer said nine months sales increased 11% and net declined 44% to 26.5 billion yen.

Toshiba Corp increased 1.4% to 427 yen after the flash memory and other electronic assemblies maker left its earnings outlook unrevised and declared profit in the first half.