Nikkei in Tokyo Trim Gains; Trade Balance Swung to Surplus

Nigel Thomas
22 Mar, 2012
New York City

Stocks in Tokyo faced selling in the final hour after Chinese manufacturing declined for the fifth month in a row. Japan exports declined less than expected and trade balance swung to a surplus in February.

[R]8:30 PM Tokyo – Stocks in Tokyo faced selling in the final hour after Chinese manufacturing declined for the fifth month in a row. Japan exports declined less than expected and trade balance swung to a surplus in February.[/R]

Stocks in Tokyo trading pared gains after a private survey in China showed a decline in manufacturing activity for the fifth month in a row.

The Chinese survey dragged indexes across Asia and investors in Tokyo overlooked the trade surplus in February.

Ministry of Finance said exports fell 2.7% in the month and imports increased 9.2% on the rising import of fossil fuels and trade balance swung to a surplus of 32.9 billion yen or nearly $380 million.

The first trade surplus in five month was a surprise as the nation struggles to rebuild its supply chains and imports of fossil fuels soar after nuclear plants were idled in 2011.

The Nikkei 225 Stock Average gained 40.59 to close at 10,127.08 and the broader Topix index rose 3.29 to 862.07.

The dollar inched up to 83.73 and the euro gained to 111.10 yen.

Stock Movers

Toyota Motor closed up 15 yen to 3,535 yen and Honda Motor Co. increased 55 yen to 3,275 yen and Nissan Motor Co Ltd increased 13 yen to 878 yen.

Yokohama Rubber Co. closed up 4 yen to 590 yen and Bridgestone Corp gained 24 yen to 2,025 yen.

Electronics exporters and China linked companies declined after the latest data on Chinese manufacturing.

Sony Corp rose 1 yen to 1,734 yen, Panasonic Corp closed unchanged at 763 yen and Canon Inc closed up 5 yen to 3,900 yen. Nintendo Co. Ltd gained 470 yen to 13,070 yen.

Olympus Corp increased 33 yen to 1,340 yen, Nikon gained 27 yen to 2,440 yen and Fanuc Ltd closed down 190 yen to 15,170 yen. Hitachi Ltd rose 1.4% to 504 yen.

Komatsu Ltd decreased 35 yen to 2,389 yen, Hitachi Construction Machinery Co decreased 32 yen to 1,823 yen and Toyo Engineering Corp closed up 18 yen at 389 yen.

Shipping companies rested after a 5-month old rally lifted stocks beyond what most investors feel can be supported by fundamentals.

Mitsui O.S.K. Lines, Ltd fell 2 yen to 367 yen, Kawasaki Kisen Kaisha, Ltd closed down 5 yen to 176 yen and Nippon Yusen K.K. fell 1 yen to 260 yen.

Fast Retailing Co. increased 180 yen to 18,180 yen and J. Front Retailing Co. Ltd closed up 3 yen to 443 yen.

Mitsubishi UFJ Financial Group rose 1 yen to 435 yen and Sumitomo Mitsui Financial Group gained 13 yen to 2,873 yen. Nomura Holdings, Inc fell 5 yen to 391 yen.

Tokyo Tatemono Co., Ltd fell 2 yen to 335 yen and Mitsui Fudosan decreased 17 yen to 1,589 yen and Sumitomo Realty & Development Co. decreased 21 yen to 1,956 yen.

Nippon Steel decreased 3 yen to 232 yen and JFE Holdings Inc decreased 2.1% or 39 yen to 1,793 yen.