Tokyo Stocks Advance; November Trade Deficit Widens

Nigel Thomas
21 Dec, 2011
New York City

Stocks in Tokyo trading rebounded and exporters, banks and resources linked stocks led the gainers. Japanese ocean freight companies formed alliances to stabilize prices as freight rate hover near three-year low. November exports fell 4.5% and imports rose 11.4%.

[R]7:00 PM Tokyo – Stocks in Tokyo trading rebounded and exporters, banks and resources linked stocks led the gainers. Japanese ocean freight companies formed alliances to stabilize prices as freight rate hover near three-year low.[/R]

Stocks in Tokyo traded higher as banks and resources led the advancers after a rally in international markets.

The market sentiment was positive after U.S. housing construction data suggested a sharp rebound in new building and issuance of new housing permits. The monthly increase of 9% in October housing construction was largely driven by a surge in new apartment buildings by 30%.

The Nikkei 225 Stock Average rose 1.5% or 123.50 to 8,459.98 and the broader Topix index added 1% to 725.68.

Tokyo Electric Power Company, Inc plunged 10% to 211 yen on the media reports that the government may acquire two-third stake in the utility.

Earlier the government said that the troubled nuclear power plant Fukushima is “stable” but may take as long as 40 years before it is decommissioned.

Japan’s Exports Decline 4.5%

Japan’s Ministry of Finance said November exports fell 4.5% from a year ago to 5.2 trillion yen and imports rose 11.4% to 5.882 trillion yen and trade deficit widened to 684.7 billion yen from 273.8 billion yen in October.

According to the press release, exports to China declined 7.9%, to U.S. rose 2% and Western Europe dropped 7%.

Stock Movers

IHI Corp increased 3 yen to 187 yen and Mitsubishi Heavy Industries, Ltd closed flat at 326 yen after a day two companies were selected to build F-35 fighter plane with Lockheed Martin for the Defense Ministry.

Toyota Motor added 35 yen to 2,511 yen and Honda Motor Co. rose 55 yen to 2,325 yen and Nissan Motor Co Ltd added 9 yen to 699 yen.

Sony Corp increased 45 yen to 1,361 yen, Panasonic Corp gained 5 yen at 650 yen and Canon Inc closed up 45 yen to 3,435 yen. Nintendo Co. Ltd decreased 40 yen to 10,540 yen.

Nexon Co Ltd rebounded 7 yen after five days of decline to 1,060 yen.

Olympus Corp decreased 15 yen to 1,050 yen on the media reports that the Japanese regulators enforcement arm raided the company headquarters today.

Fanuc Ltd closed up 900 yen to 11,850 yen and Kyocera closed up 120 yen at 6,330 yen. Nikon Corp decreased 3 yen to 1,690 yen.

Elpida Memory Inc fell 11 yen to 374 yen and Ulvac, Inc rose 3 yen to 972 yen.

Mitsui O.S.K. Lines, Ltd increased 5 yen to 288 yen, Kawasaki Kisen Kaisha, Ltd closed up 4 yen to 139 yen and Nippon Yusen K.K. increased 7 yen to 199 yen.

Daiichi Sankyo Ltd increased 42 yen to 1,515 yen and Astellas Pharma Inc closed up at 3,095 yen.

Fast Retailing Co. added 420 yen to 13,760 yen.

Ms&Ad Insurance Group Holdings, Inc closed up 30 yen to 1,420 yen and NKSJ Holdings Inc rose 25 yen to 1,484 yen.

Mitsubishi UFJ Financial Group closed up 3 yen at 327 yen and Sumitomo Mitsui Financial Group increased 32 yen to 2,177 yen.

Komatsu Ltd gained 47 yen to 1,855 yen and Hitachi Construction Machinery Co added 37 yen to 1,310 yen.

Softbank Corp closed unchanged at 2,304 yen, KDDI rose 0.9% to 491,000 yen and NTT DoCoMo, Inc rose 0.7% to 137,500 yen.