Japan Posts First Deficit in 30 Years; Yen Weakens

Nigel Thomas
25 Jan, 2012
New York City

Stocks in Tokyo trading extended gains for the seventh day in a row as resources and merchant fleet operators led the gainers. Japan reported its first trade deficit as imports surge and exports struggle after natural disasters.

[R]8:30 PM Tokyo – Stocks in Tokyo trading extended gains for the seventh day in a row as resources and merchant fleet operators led the gainers. Japan reported its first trade deficit as imports surge and exports struggle after natural disasters.[/R]

Stocks in Tokyo traded higher and the broader Topix index gained for the seventh day in a row.

The Nikkei 225 Stock Average rose 1.1% to 8,883.69 and the broader Topix index increased 1.3% to 767.40.

The yen declined to 77.98 against one dollar and fell to 101.56 against one euro to 101.56.

Japan Records Trade Deficit

Japan reported its trade deficit in 2011 and first in more than thirty years and the second largest on record.

According to the Ministry of Finance 2011 trade deficit was 2.4 trillion yen or $32 billion, and its first deficit since 1980.

Japan reported its trade deficit after it suffered devastating earthquake and tsunami in March of last year and prolonged flood damages at many manufacturing companies iafter floods in Thailand.

Japan is likely to report trade deficit for at least two more years as it ramps up its import of thermal energy after nuclear power is off the grid.

Stock Movers

Toyota Motor increased 84 yen to 2,877 yen and Honda Motor Co. rose 102 yen at 2,773 yen and Nissan Motor Co Ltd increased 18 yen to 739 yen. Suzuki Motor Corp rose 67 yen to 1,752 yen.

Auto stocks and electronics exporters were on the rise after the yen edged lower.

Sony Corp increased 66 yen to 1,454 yen, Panasonic Corp rose 16 yen at 656 yen and Canon Inc closed up 100 yen to 3,510 yen. Nintendo Co. Ltd increased 160 yen to 10,860 yen.

Olympus Corp closed down 4 yen at 1,284 yen.

Nikon Corp added 38 yen to 1,842 yen, Fanuc Ltd closed up 80 yen to 13,060 yen and Kyocera rose 80 yen to 6,630 yen. Casio Computer Co., Ltd increased 12 yen to 474 yen.

Mitsui O.S.K. Lines, Ltd increased 21 yen to 298 yen, Kawasaki Kisen Kaisha, Ltd added 9 yen to 151 yen and Nippon Yusen K.K. increased 7 yen to 203 yen.

Inpex Corp gained 0.6% to 520,000 yen after crude oil prices firmed in international markets and the yen edged lower.

Kajima Corporation decreased 3 yen to 257 yen and Obayashi Corp fell 3 yen to 366 yen. Tobishima Corp fell 5 yen to 123 yen. Japan Bridge dropped 7.5% or 71 yen to 873 yen.

Tokyo Electric Power Company, Inc decreased 5 yen to 202 yen.

Fast Retailing Co. decreased 180 yen to 14,920 yen and J. Front Retailing Co. Ltd closed up 2 yen at 379 yen.

Mitsubishi UFJ Financial Group added 2 yen to 359 yen and Sumitomo Mitsui Financial Group closed up 21 yen at 2,430 yen.

Komatsu Ltd increased 1.1% to 2,137 yen, Hitachi Construction Machinery Co increased 36 yen to 1,517 yen and Toyo Engineering Corp increased 9 yen to 324 yen.

Softbank Corp closed down 11 yen at 2,192 yen, KDDI Corp decreased 0.6% to 481,500 yen and NTT DoCoMo, Inc closed up 0.4% to 139,400 yen.