Japan Revised GDP Contraction to 0.7%, Current Account Swings to Deficit

Nigel Thomas
08 Mar, 2012
New York City

Tokyo stocks advanced and the yen eased after current account swung to a deficit in January on rising fuel import bill. The economic growth in the quarter to December was revised to 0.7% contraction from 2.3% shrink.

[R]8:00 PM Tokyo – Tokyo stocks advanced and the yen eased after current account swung to a deficit in January on rising fuel import bill. The economic growth in the quarter to December was revised to 0.7% contraction from 2.3% shrink.[/R]

The economic growth in the fourth quarter was revised to annualized 0.7% contraction compared to previous estimate of 2.3% shrink. The Cabinet Office revised the data today on higher contribution from exports.

Separately, Finance Ministry said current account balance slipped into deficit in January, for the first time in three years after imports rose and exports slowed.

Current account deficit in the month was 437.3 billion yen after balance of goods trade deficit was 1,381.6 billion yen compared to a deficit of 399.4 billion yen in the month a year ago.

Export growth slowed to 8.5% from a year ago month to 4,353.6 billion yen and imports surged 11.2% to 5,725.2 billion yen on the rising fuel imports bill.

The Nikkei 225 Stock Average gained 2% to close at 9,768.96 and the broader Topix index increased 1.6% to 836.16.

The dollar traded at 81.24 yen and flirted with a 9-month high of 81.66 yen and gained against the euro to 107.23.

Finance Ministry also said foreign investors purchased a net 164.9 billion yen or $2 billion worth of Japanese shares last week. The net purchase increased for the tenth week in a row after foreign investors lowered stock holdings by 3 trillion yen in the last quarter to December.

Stock Movers

Toyota Motor closed up 85 yen at 3,330 yen and Honda Motor Co. rose 60 yen to 3,035 yen and Nissan Motor Co Ltd rose 17 yen to 817 yen.

Sony Corp increased 10 yen to 1,648 yen, Panasonic Corp rose 7 yen to 710 yen and Canon Inc closed up 80 yen to 3,715 yen. Nintendo Co. Ltd increased 140 yen to 11,300 yen.

Olympus Corp increased 14 yen to 1,300 yen, Nikon gained 93 yen to 2,241 yen and Fanuc Ltd increased 460 yen to 14,580 yen.

Mitsui O.S.K. Lines, Ltd increased 2 yen to 349 yen, Kawasaki Kisen Kaisha, Ltd closed up 2 yen to 174 yen and Nippon Yusen K.K. rose 2 yen to 234 yen.

Fast Retailing Co. increased 610 yen to 17,400 yen and J. Front Retailing Co. Ltd closed up 11 yen to 428 yen.

Mitsubishi UFJ Financial Group gained 11 yen to 415 yen and Sumitomo Mitsui Financial Group increased 66 yen to 2,735 yen. Nomura Holdings, Inc rose 17 yen to 378 yen.

Real estate companies gained after a broker Miki Shoji Co. said Tokyo office vacancy rate fell to 9.15% in February from 9.23% in January.

Tokyo Tatemono Co., Ltd increased 17 yen to 335 yen and Mitsui Fudosan added 70 yen to 1,551 yen and Sumitomo Realty & Development Co. increased 86 yen to 1,954 yen.

Komatsu Ltd increased 73 yen to 2,342 yen, Hitachi Construction Machinery Co increased 52 yen to 1,700 yen and Toyo Engineering Corp closed increased 10 yen at 360 yen.

Bridge and infrastructure developers fell after rising for two days on the speculation that the Tokyo region may increase spending on bridge infrastructure.

Japan Bridge Corporation fell 1.5% to 452 yen and Miyaji Engineering Group Inc decreased 1.6% to 181 yen and highway contractor Tekken Corp soared 3.6%.

Softbank Corp rose 8 yen to 2,351 yen, KDDI Corp closed down 1.1% to 526,000 yen and NTT DoCoMo, Inc closed up 100 yen to 140,300 yen.