Nikkei Gains; Japan Trade Surplus Surges 153% in 2010

Chandrasekhar Atreya
27 Jan, 2011
New York City

Japanese stocks closed higher ahead of earning outlook and U.S. economy. Trade surplus surges 153.4% to 6.77 trillion yen in 2010. Canon Inc full year net surges 87% to 246.6 billion yen. Toyota recalls 245,000 Lexus cars in the U.S.

[R]5:00 PM Tokyo, Japan – Japanese stocks closed higher ahead of earning outlook and U.S. economy. Trade surplus surges 153.4% to 6.77 trillion yen in 2010. Canon Inc full year net surges 87% to 246.6 billion yen. Toyota recalls 245,000 Lexus cars in the U.S.[/R]

Tokyo stocks gained in trade after dropping for two days, despite a strong yen ahead of earnings reports and U.S. economy.

The Nikkei 225 Stock Average finished the day 0.74% or 76.56 up, to close at 10,478.66. The broader Topix gained 0.8% to close at 929.66.

The yen closed at 82.15 yen to a dollar and 112.74 yen to a euro in Tokyo today.

Japan’s 2010 trade surplus surged 153.4% to 6.77 trillion yen on a custom-cleared basis, the Finance Ministry reported today.

Exports increased 24.4% to 67.4 trillion yen, rising for the first time in three years, while imports surged 17.7% to 60.63 trillion yen.

Toyota Motor Corp, which voluntarily recalled today about 245,000 Lexus IS and GS luxury cars in the U.S. to inspect and tighten the fuel-pressure sensors, took almost two years to submit its U.S. recall report, after the automaker’s initial investigation of a potential gasoline leak failed to find defects in the fuel line parts of the car.

The first U.S. report of fuel odor was in March 2009, according to a letter sent today by the company to the National Highway Traffic Safety Administration.

Honda Motor Co said today that its December output in Japan fell 3.1% from a year ago to 83,652 vehicles, marking the first such decline in two months.

While exports surged 108.8% to 27,381 vehicles in December, up for a second month in a row, domestic sales dropped 35.2% to 41,927 units, the company said.

The Financial Services Agency said today it plans to have targeted inspection checks of financial institutions to check whether they are following voluntary regulations on selling derivatives and other high-risk investment products.

The watchdog said it is moving to make sure the financial industry is playing by its own rules, following up on a recent ban on unsolicited sales offers.

Panasonic Corp said on Wednesday it plans to sell 9 million LED light bulbs in Japan next fiscal year, up from the expected and targeted 4.4 million units in the current fiscal year ending March 31.

Growing demand of the product to replace incandescent lamps is expected to reach 18 million units in the coming fiscal year from the current 11 million units and the company plans to grab half that market to achieve that target.

Prime Minister Naoto Kan is scheduled to make a speech on Japan’s ongoing efforts to promote free trade at the World Economic Forum in Davos, Deputy Chief Cabinet Secretary Hirohisa Fujii said today.

Canon Inc said today its net profit for the December quarter fell 12% to 54 billion yen from 61.6 billion yen a year earlier due to the strength in the yen.

For the whole of 2010, the company’s net surged 87% to 246.6 billion yen, while operating profit rose 79% to 387.55 billion. The results were in-line with the company’s forecast in October.

Stock Movers

Fanuc Corp, the maker of industrial robots, surged 4.58% to 13,250 yen after saying profit increased for the nine month period to December four-fold.

Mitsubishi Heavy Industries Ltd also gained 4.01% to 337 yen, after the Nikkei newspaper said its earnings may beat expectations.

Marubeni Corp rose 4.26% to 637 yen after oil and metal prices increased, while Mitsui & Co rose 0.87% to 1,398 yen.

Gree Inc, the largest social-networking site of Japan, surged 7.19% to 1,300 yen after JP Morgan Chase boosted its investment rating to ‘overweight’ from ‘neutral.’

Resona Holding declined for the second day in a row and dropped 4.7% to 426 yen, below the offer price of 440 yen for a public offering.