Japan Lowers GDP Growth to 0.2%, Current Account Surplus Narrows

Nigel Thomas
10 Sep, 2012
New York City

Stocks in Tokyo trading were on the defensive after China reported weak economic data and U.S. employment rebound was less than expected. Japan lowered its June quarter economic growth to 0.2%. Electronic chip-equipment makers declined after Intel lowered its annual view.

[R]5:00 PM Tokyo – Stocks in Tokyo trading were on the defensive after China reported weak economic data and U.S. employment rebound was less than expected. Electronic chip-equipment makers declined after Intel lowered its annual view.[/R]

Markets in Tokyo closed nearly unchanged after the government revised the economic growth lower more than expected and the latest data from China highlighted a slowdown.

Japan''s gross domestic product expanded 0.2% in the second quarter compared to the 1.2% growth in the first quarter and lower than the 0.3% growth estimated initially, the Cabinet Office said today.

From a year ago, the GDP expanded at 0.7% compared to the previous 1.4% estimate.

Current account surplus narrowed to 625.4 billion yen or $8 billion in July, a 41% decline from a year ago. The surplus declined after the exports in the month fell 7.4%.

Separately, China said annual consumer price inflation rose to 2% in August from 1.8% in July, according to the data released by the National Bureau of Statistics yesterday.

China''s trade surplus increased to $26.66 billion in August compared to $25.1 billion in July. Exports rose 2.7% from a year ago and imports declined 2.6%.

Industrial output eased to 8.9% annually in August, from the 9.2% growth in July.

The Nikkei 225 Stock Average edged lowered 2.28 to 8,869.37 and the broader Topix Index added 2.17 to 737.34. For the week, the Nikkei added 0.4%.

Stocks in Review

Toyota Motor increased 0.6% to 3,225 yen, Honda Motor Co. slipped 5 yen to 2,595 yen and Nissan Motor Co Ltd slid 3 yen to 748 yen.

Nippon Steel added 3 yen to 166 yen and JFE Holdings Inc increased 16 yen to 1,074 yen. Tokyo Steel Manufacturing grew 9 yen to 281 yen.

Canon Inc dropped 36 yen to 2,553 yen and Seiko Epson Corp slid 1 yen to 495 yen and Ricoh Co Ltd slipped 4 yen to 620 yen. Sony Corp increased 13 yen to 921.

Panasonic Corp decreased 5 yen to 543 yen and Nikon declined 63 yen to 2,096 yen. Toshiba Corp, the maker of NAND flash chips gained 5 yen to 256 yen.

Olympus slipped 0.6% to 1,451 yen, Nintendo Co. Ltd increased 160 yen to 8,810 yen, Fujitsu added 0.9% to 319 yen and Pioneer Corp. soared 17 yen or 7% to 244 yen. Sharp Corp slid 1.9% to 202 yen.

China linked stocks closed higher on the hopes that the government will announce another round of stimulus after the release of the latest batch of economic data and China approved 60 construction projects.

Fanuc Ltd climbed 170 yen to 13,100 yen and Komatsu Ltd jumped 51 yen to 1,643 yen. Hitachi Construction Machinery Co advanced 28 yen to 1,347 yen.

Tokyo Electron Ltd decreased 3.3% and Advantest Corp dropped 4% after Intel lowered its annual outlook and cut its capital expenditure plan in the year.

FamilyMart Co Ltd, the convenience chain operator increased 25 yen to 3,680 yen, Lawson declined 30 yen to 5,650 yen and Seven & I Holdings Co gained 28 yen to 2,325 yen. Ito En Ltd added 8 yen to 1,549 yen.

Yamada Denki jumped 150 yen or 4.2% to 3,700 yen. Nitori Holdings Co climbed 100 cents to 7,900 yen, apparel retailer Shimamura increased 10 yen to 8,990 yen and Sagami Co slid 1 yen to 116 yen.

Fast Retailing Co. slipped 80 yen to 18,030 yen and J. Front Retailing Co. Ltd added 7 yen to 403 yen.

Kajima Corp closed unchanged at 215 yen and Taisei Corp up to 1 yen 211 yen. Sekisui House Ltd climbed 13 yen to 761 yen and Daito Trust Construction Co Ltd declined 50 yen to 7,750 yen.

Tokyo Tatemono Co., Ltd added 2 yen to 274 yen and Mitsui Fudosan gained 5 yen to 1,527 yen and Sumitomo Realty & Development Co. increased 19 yen to 2,015 yen.

Inpex Corp down 0.1% to 448,000 yen and Japan Petroleum Exploration Co. added 10 yen to 3,035 yen. Tokyo Electric Power Company, Inc. edged up 2 yen to 129 yen.

Mitsui O.S.K. Lines, Ltd slid 1 yen to 188 yen and Kawasaki Kisen Kaisha, Ltd lowered 1 yen to 94 yen and Nippon Yusen K.K. down 2 yen to 141 yen.

Mitsubishi UFJ Financial Group gained 3 yen to 366 yen and Sumitomo Mitsui Financial Group climbed 21 yen to 2,478 yen. Nomura Holdings, Inc gained 8 yen to 286 yen.

Tokio Marine slid 2 yen to 1,975 yen and Mito Securities increased 4 yen to 145 yen.

Credit Saison Co Ltd added 4 yen to 1,830 yen.