Yen Trading Oveshadows Stocks in Tokyo

Hiruki Nakamura
18 Jun, 2014
New York City

Stocks in Tokyo close higher and market indexes gained and yen trading was in focus after investors sought the safety in currency on the rising tensions in Iraq. Kobe Steel forecasted a return profitability in the current year. Seven & I plan to expand to Dubai in 2015.

[R]4:30 PM Tokyo – Stocks in Tokyo close higher and market indexes gained and yen trading was in focus after investors sought the safety in currency on the rising tensions in Iraq. Kobe Steel forecasted a return profitability in the current year. Seven & I plan to expand to Dubai in 2015.[/R]

Stocks in Tokyo closed higher after Japan reported trade deficit declined for the 23rd month in a row.

Japan’s trade deficit narrowed to 909 billion yen or $8.9 billion, 23rd monthly decline in a row and dropped 8.3% from a year ago month.

Imports dropped 3.6% to 6.516.5 trillion yen down for the first time in 19 months and exports fell 2.7% to 5.6076 trillion from a year ago, first decline in 15 months.

In May, exports to China rose 0.4% to 1.0497 trillion yen while imports slumped 2.7% to 1.4191 trillion yen, the first drop in 17 months from a year earlier.

Export to the United States fell 2.8% to 1.0107 trillion yen, a decline for the first time in 17 months, and imports slid 0.5% to 611.2 billion yen.

Exports to the European Union climbed 14.5% to 606.0 billion yen and imports jumped 5.7% to 652.8 billion yen from a year ago period.

The Nikkei 225 Stock Average jumped 139.83 or 0.9% to 15,115.80 and the broader Topix index increased 10.95 to 1,249.15.

The yen weakened to close at 102.28 against one U.S. dollar.

Stocks in Review

Kobe Steel, Ltd jumped 1.4% to 149 yen after the steel producer forecasted pre-tax profit for the year of about 10 billion yen compared to a loss of approximately 2 billion yen in the previous year.

Mitsubishi Corp gained 0.9% to 2,110 yen after the diversified company signed a contract with Istanbul Metropolitan Municipality for the supply of rolling stock for new metro line. The contract is valued at €119 million for 126 cars, a total of 21 train sets.

Nagase & Co., Ltd increased 1.3% to 1,257 yen after the import and export wholesale trader reported net sales in the year ending in April climbed 109% to 7.23 billion yen from 6.66 billion yen a year ago.

Net income in the year plunged 82% to 116 million yen compared to 141 million yen a year earlier.

The company forecasted net sales in the fiscal 2015 jump 108% to 7.83 billion yen from 7.23 billion yen and net income will soar 122% to 142 million yen compared to 116 million yen reported in fiscal 2014.

Seven & I Holdings Co., Ltd rose 0.7% to 4,133 yen after the convenience stores operator plans to open a 7-Eleven convenience store in Dubai in the summer of 2015, the first 7-Eleven outlet in the Middle East.