Regional Survey in Japan Show Improving Economic Conditions

Hiruki Nakamura
04 Jul, 2013
New York City

Market indexes in Tokyo trading declined for the first time in six days and the yen closed below 100 against a dollar. Regional economic survey form the Bank of Japan showed improving economic activities in eight of the nine regions. Foreign investors increased net exposure to Japanese stocks.

[R]5:00 PM Tokyo – Market indexes in Tokyo trading declined for the first time in six days and the yen closed below 100 against a dollar. Regional economic survey form the Bank of Japan showed improving economic activities in eight of the nine regions. Foreign investors increased net exposure to Japanese stocks at the end of June.[/R]

Stocks in Tokyo closed lower after rallying for five days in a row. The five-day rally lifted Topix more than 9%.

The Nikkei 225 Stock Average slid 36.63 or 0.3% to 14,018.93 and the Topix inched lower 3.10 to 1,170.71.

The yen edged up in Tokyo trading to 99.76 against one dollar.

Foreign investors increased net exposure to Japanese stocks by 479.7 billion yen in the week ending on June 28, the largest increase in six weeks, according to a Finance Ministry release.

A regional survey of economic assessment in Japan showed improving economic conditions. The Sakura report released today from the Bank of Japan showed economic climate and activities picked up in 8 of the 9 regions tracked by the central bank.

Stocks in Review

Toyota Motor Corp fell 50 yen to 6,180 yen and Honda Motor Co. slid 20 yen to 3,795 yen. Nissan Motor Co Ltd lowered 15 yen to 1,036 yen.

Sony rose 15 yen to 2,181 yen. Canon Inc slipped 35 yen to 3,320 yen and Nikon down 10 yen to 2,302 yen.

Fanuc Corp dropped 90 yen to 14,530 yen.

Softbank Corp slid 90 yen to 5,710 yen after won final merger approvals of U.S. based Sprint Nextel and Clearwire Corp from U.S. regulators on July 3.

Seven & I Holdings Co closed unchanged at 3,705 yen Fast Retailing Co. jumped 450 to 35,250 yen.

Mitsubishi UFJ Financial Group slid 4 yen to 640 yen and Sumitomo Mitsui Financial Group closed unchanged at 4,695 yen.

Chiyoda Corporation jumped 3.9% to 1,221 yen after the industrial plants builder agreed to acquire more than half of Xodus owned by Sunrise Xodus BV and Simmons Parallel Private, but terms were not disclosed.

Dentsu Inc plummeted 9.2% to 3,155 yen after the advertising company won contract from International Olympic Committee for advertising rights for the XXII Olympic Winter Games of 2014 in Russia and the Games of the XXXI Olympiad of Brazil in 2016.

Dentsu said its plans to open a public share sale to raise funds to pay off a short-term debt linked to the takeover of Aegis.