Japan GDP Declined 1.1%; Toyota, Kirin, Dai-ichi Rise

Nigel Thomas
14 Feb, 2011
New York City

Stocks in Tokyo reopened after three-day weekend and surged 1.1%. Exporters and electronics companies closed higher. Fourth quarter GDP declined 1.1% and for the year 2010 rose 3.9% to $5.47 trillion.

[R]5:00 PM Tokyo – Stocks in Tokyo reopened after three-day weekend and surged 1.1%. Exporters and electronics companies closed higher. Fourth quarter GDP declined 1.1% and for the year 2010 rose 3.9% to $5.47 trillion.[/R]

Stocks in Japan closed higher to 9-month high after three-day weekend and tensions receded in the Middle East. Automakers led the gainers and banks and property developers led the decliners.

The Nikkei 225 Stock Average rose 119.89 or 1.1% to 10,725.54 and the broader Topix index added 12.56 or 1.33% to 959.19.

The yen closed at 83.01 to a dollar from 82.87 yen to a dollar at Thursday close.

Gross Domestic Product in the last quarter to December in Japan declined 1.1% annual rate. The decline in the economy was the first in five quarters, the Cabinet Office.

The GDP declined 0.3% in the quarter from the previous quarter ending in September and real GDP rose 3.9% in 2010.

The decline was less than expected as exports revived and global economic rebound lifting overseas sales.

Exports declined 0.7% and imports fell 0.1%. Japan’s GDP in 2010 was $5.47 trillion slightly under China’s GDP of $5.88 trillion.

The GDP deflator declined to 1.6% from 2.1% in the previous quarter.

Despite the decline in the quarterly GDP, exports rose for the second month in a row in December and are expected to be ahead in January.

Economic Minister Kaoru Yosano at a press conference said is “a welcome development.”

Stock Movers

Dai-ichi Life soared 5.9% to 148,200 yen after half-year net declined 56% on positive comments from Nomura Securities and lifted its target price to 232,000 yen from 190,000 yen.

Kirin Holdings increased 2.6% to 1,169 yen after the company guided fiscal 2011 net earnings to rise five-fold to 58 billion yen. Sapporo Holdings closed unchanged at 379 yen after the company said it began discussions with privately help Pokka Corp to merge.

Toyota Corp rose 2.5% to 3,870 yen and Nissan and Honda also closed higher. Fanuc increased 3.8% to close at 12,630 yen.

Olympus rose 4.8% to 2,570 yen and the camera and medical equipment maker lowered its full year earnings outlook.