Reported Inflation in Japan Picks Up, Nikkei Falls 0.3%

Hiruki Nakamura
30 May, 2014
New York City

Stocks in Tokyo slipped on Friday and for the week the Nikkei Stock Average increased 1.2%. The yen held firm. The latest measure of inflation tracked by the government in April showed the largest jump since 1991.

[R]4:30 PM Tokyo – Stocks in Tokyo slipped on Friday and for the week the Nikkei Stock Average increased 1.2%. The yen held firm. The latest measure of inflation tracked by the government in April showed the largest jump since 1991.[/R]

Stocks in Tokyo edged lower and the latest inflation data confirmed the rising inflationary pressure after the central bank offered an unprecedented stimulus last year.

The internal affairs ministry reported the core consumer price index in April jumped 3.2% from a year ago. The core index excludes volatile fresh food prices.

The index jumped the most since 1991 after the government implemented first increase in sales tax in several years.

The national sales tax was raised from 5% to 8% on April 1. The Bank of Japan estimated the increase boosted inflation by around 1.7%.

The Ministry of Internal Affairs and Communications said Japan''s seasonally adjusted unemployment rate in April was unchanged at 3.6% from the previous month.

The ministry added after seasonal adjustment the number of jobless was also unchanged from March at 2.36 million.

The Nikkei 225 Stock Average slipped 49.34 or 0.3% to 14,632.38 and the broader Topix index edged up 0.73 to 1,201.41. For the week, Nikkei 225 gained 1.2%.

The yen closed at 101.82 against one U.S. dollar.

Stocks in Review

Amada Co Ltd slid 0.2% to 962 yen after the machine tools maker reported net sales in the year ending in March soared 35% to 256.48 billion yen from 190.02 billion yen a year ago.

Net income in the year surged 195.3% to 12.18 billion yen compared to 4.13 billion yen and earnings per share jumped to 31.89 yen from 10.81 yen a year earlier.

Bridgestone Corp gained 1.7% to 3,676 yen after the tire-maker struck a 10-year sponsorship deal with the International Olympic Committee that will cover the 2020 Tokyo Games. The deal will permit the tire maker to use Olympic logo for global advertising and other publicities events and distributions.

Bridgestone will pay about 35 billion yen or $344 million that will span ten years including 2016 Olympics in Rio de Janeiro and 2018 Winter Games in Pyeongchang, South Korea.

Casio Computer Co Ltd dropped 2.7% to 1,355 yen after the electronic consumer goods maker said net sales in the year ending in March jumped 8.1% to 321.76 billion yen from 297.76 billion yen a year ago period.

Net income in the year climbed 34.6% to 15.99 billion yen compared to 11.88 billion yen and diluted earnings per share increased to 59.45 yen from 44.15 yen a year earlier.

Intage Holdings Inc gained 1% to 1,247 yen after the marketing research and consulting service provider stated net sales in the year ending in March increased 6.5% to 42.51 billion yen from 39.93 billion yen a year earlier.

Net income in the year soared 31.4% to 1.64 billion yen compared to 1.25 billion yen and earnings per share rose to 81.66 yen from 62.15 yen a year earlier.

Shizuoka Gas Company, Ltd fell 0.2% to 622 yen after the nature and petroleum gas distributor signed an agreement with Australia-based NPEX Corporation. The company with Tokyo Electric Power Company will purchase LNG from the Prelude Floating LNG project.

Tokyo Electric Power Co Inc climbed 5.4% to 413 yen and the government is considering to revising compensation law after nuclear accidents.