Exports Lift Japan GDP Rebound at 6% Rate

Nigel Thomas
14 Nov, 2011
New York City

Stocks in Japan rebounded after economy expanded at 6% annual rate in the second quarter. The surge in exports and an increase in private consumption lifted the growth but the economy is expected to struggle in the year. Tosoh Corp declined after a fire broke out at its plant in Southern Japan.

[R]6:00 PM Tokyo – Stocks in Japan rebounded after economy expanded at 6% annual rate in the second quarter. The surge in exports and an increase in private consumption lifted the growth but the economy is expected to struggle in the year. Tosoh Corp declined after a fire broke out at its plant in Southern Japan.[/R]

The economy in the fiscal second quarter surged at 6%, the fastest in eighteen months after exports rebounded from the recent earthquake linked losses, according to the data released by thr Cabinet Office.

The economy expanded at 1.5% from the previous quarter with the largest contribution from the rise in exports of 6% as production disruption eased. Household consumption increased 1% and contributed 0.6% rise in the GDP in the quarter. Private investment increased 1.7% in the quarter.

The Nikkei 225 Stock Average increased 1.1% to 8,603.70 and the broader Topix index added 0.9% or 8.55 to 735.55.

In trading on the first section of the Tokyo Stock Exchange, volume was thin at 1.4 billion shares, lower than 1.74 billion average of last week.

Stock Movers

Toyota Motor increased 29 yen to 2,483 yen and Honda Motor Co. increased 13 yen to 2,285 yen and Nissan Motor Co Ltd rose 14 yen to 719 yen.

Sony Corp increased 19 yen to 1,373 yen, Panasonic Corp closed up 12 yen at 701 yen and Canon Inc fell 25 yen to 3,410 yen.

Sony gained after a consortium controlled by the company won the music publishing operations of the troubled UK based EMI for $2.2 billion on Friday.

Nintendo Co. Ltd rose 160 yen to 12,450 yen.

Olympus Corp dropped 80 yen or 18% to 540 yen on the speculation that the company will face a fine from the Tokyo Exchange but will be spared from the delisting.

Nomura Holdings, Inc increased 5.7% to 257 yen and traded near three decade low after the company is rumoured to be involved in trading for Olympus that may have helped the camera maker hide losses for decades.

Fanuc Ltd increased 450 yen to 12,810 yen and Kyocera closed down 30 yen at 6,670 yen. Nikon Corp added 35 yen to 1,762 yen.

Mitsui OSK Lines, Ltd increased 2 yen to 260 yen, Kawasaki Kisen Kaisha, Ltd closed up 2 yen to 137 yen and Nippon Yusen K.K. fell 1 yen to 175 yen.

Dai-ichi Life fell 1,100 yen to 76,500 yen after Greece and Italy appointed new prime ministers and install technocratic government that will implement austerity measures.

Property and Casualty insurers declined on the mounting losses related to Thailand floods.

MS & AD Insurance Group Holdings, Inc closed up 14 yen to 1,523 yen and NKSJ Holdings Inc surged 27 yen to 1,560 yen.

Mitsubishi UFJ Financial Group rose 6 yen to 334 yen and Sumitomo Mitsui Financial Group increased 44 yen to 2,066 yen.

Komatsu Ltd increased 72 yen to 1,978 yen and Hitachi Construction Machinery Co increased 50 yen to 1,498 yen.

Toyo Engineering Corp extended gains for the second day by 6 yen to 268 yen after the plant engineering company increased annual dividend to 5 yen per share from 3 yen per share.

Tosoh Corp declined 4.4% or 10 yen to 219 yen after the chemical maker said a fire at its plant in Yamaguchi prefecture will force it to cut its output by 40%.