Japan Swings to Trade Deficit in March; Nippon Sheet at 3-Decade Low

Nigel Thomas
19 Apr, 2012
New York City

Stocks in Japan traded lower after a surge in yesterday

[R]8:30 PM Tokyo – Stocks in Japan traded lower after a surge in yesterday’s trading and trade balance swung to a deficit in March on higher fuel imports. Nippon Sheet Glass Company dropped 7% and closed at a new three-decade low after the company chief executive resigned.[/R]

Stocks in Tokyo trading eased after a surge yesterday and pared gains in the early afternoon ahead of bond auctions in France and Spain. After the close, France and Spain raised €11.5 billion.

Japan’s merchandise trade deficit was 82.55 billion yen in March, following the 29.4 billion yen surplus in February, the Ministry of Finance said today.

Exports rose 5.9% on year in March, following the 2.7% contraction in February. Imports climbed an annual 10.5% in March after rising 9.2% in February. Record surge in fuel import drove imports.

Spanish Treasury auctioned €2.54 billion in two- and 10-year bonds at higher yields. France sold €8 billion of two, three and five-year bonds today at higher borrowing costs.

The Nikkei 225 Stock Average decreased 78.88 to 9,588.38 and the broader Topix index gained 14.68 to 817.77.

In trading, turnover declined to 1.67 billion shares from 1.54 billion shares on Tuesday.

The yen eased to 80.85 against one dollar but above the two-month high of 80.31.

Stock Movers

Nippon Sheet Glass Company, Limited dropped 7% or 8 yen to 108 yen after the American Craig Naylor, chief executive and president resigned from the company on differences with board after only two years on the job.

Nippon Sheet stock has lost 25% in the year so far and dropped 78% in the last ten years and closed at the lowest since mid-seventies.

Toyota Motor closed up 30 yen to 3,360 yen and Honda Motor Co. dropped 27 yen to 2,896 yen and Nissan Motor Co Ltd rose 2 yen to 840 yen.

Kansai Electric Power Company, Inc added 2 yen to 1,284 yen and Tokyo Electric Power edged down 2 yen to 203 yen.

Sony Corp decreased 12 yen to 1,376 yen and extended losses for the sixth day in a row after the recently appointed company chief laid out a new restructuring plan.

Panasonic Corp closed down 4 yen at 644 yen and Canon Inc declined 40 yen to 3,780 yen. Nintendo Co. Ltd gained 40 yen to 11,310 yen.

Olympus Corp closed down 15 yen to 1,209 yen, Nikon tumbled 47 yen to 2,343 yen and Fanuc Ltd dropped 180 yen to 14,790 yen. Hitachi Ltd increased 13 yen to 528 yen.

Komatsu Ltd added 11 yen to 2,367 yen and Hitachi Construction Machinery Co gained 16 yen to 1,804 yen.

Toyo Engineering Corp closed down 11 yen to 376 yen.

Mitsui O.S.K. Lines, Ltd rose 4 yen to 318 yen, Kawasaki Kisen Kaisha, Ltd rose 1 yen to 165 yen and Nippon Yusen K.K. added 1 yen to 237 yen.

Fast Retailing Co. slumped 170 yen to 18,690 yen and J. Front Retailing Co. Ltd closed down 4 yen to 424 yen.

Mitsubishi UFJ Financial Group rose 3 yen to 400 yen and Sumitomo Mitsui Financial Group decreased 15 yen to 2,678 yen. Nomura Holdings, Inc fell 2 yen to 351 yen.

Tokyo Tatemono Co., Ltd closed down 3 yen to 304 yen and Mitsui Fudosan slipped 19 yen to 1,486 yen and Sumitomo Realty & Development Co. decreased 13 yen to 1,833 yen.

Nippon Steel fell 5 yen to 206 yen and JFE Holdings Inc decreased 0.4% or 8 yen to 1,610 yen.