Deeper than Expected Japan's Q2 GDP Decline, Wowow Surges 7%

Hiruki Nakamura
08 Sep, 2014
New York City

Market indexes in Japan closed higher after June quarter GDP decline was worse than previously estimated. Current account surplus in July declined 30.6% on higher than expected trade deficit. Wowow Inc, satellite TV service provider soared 7%.

[R]4:30 PM Tokyo – Market indexes in Japan closed higher after June quarter GDP decline was worse than previously estimated. Current account surplus in July declined 30.6% on higher than expected trade deficit. Wowow Inc, satellite TV service provider soared 7%.[/R]

Gross domestic product in three months to June declined at annual rate of 7.1%, the Cabinet Office said today in Tokyo. In the preliminary report, GDP was estimated to shrink 6.8% annual pace.

The economy contracted the most in more than five years after the sales-tax increase in April affected household spending was affected for the second quarter in a row.

The Ministry of Finance said current account surplus in July declined 30.6% to 416.7 billion yen from a year-ago month followed by 399.1 billion yen deficit in June.

The trade deficit jumped to 828.1 billion yen compared to 537.1 billion yen in June. Exports soared 8% and imports climbed 7.6% from a year ago month.

The Cabinet Office today reported gross domestic product in the second-quarter contracted a downwardly revised 7.1% from a year ago period. GDP in the first-quarter jumped 6.1% from a year earlier.

On an annualized quarterly basis, GDP downwardly revised to 1.8% from last month''s reading of decline of 1.7%. On quarterly basis, gross domestic product increase 1.5% in the previous three months.

The Nikkei 225 Stock Average rose 36.43 to 15,705.11 and the broader Topix index edged up 5.43 to 1,298.64.

The yen declined to close at 105.09 against one U.S. dollar.

Stocks in Review

Miraial Co., Ltd rose 0.2% to 1,881 yen after the semiconductor products maker said revenues in the second-quarter ending in June soared 16.8% to 4.80 billion yen from 4.11 billion yen a year ago period.

Net income in the surged 65.7% to 500 million yen compared to 301 million yen and earnings per share climbed to 55.65 yen from 29.82 yen a year earlier.

PeptiDream Inc fell 0.8% to 10,570 yen after the peptide producer maker reported net sales in the year ending in June climbed 20.7% to 818 million yen from 678 million yen a year ago period.

Net income in the year jumped 8.3% to 148 million yen compared to 137 million yen but diluted earnings per share dropped to 9.27 yen from 9.86 yen a year earlier.

Panasonic Corporation slid 0.3% to 1,298 yen after the home appliances maker forecasted net income for fiscal 2018 to be about 330 billion yen in its home appliance sales in Europe increasing approx 20% from 280 billion yen from planned for fiscal 2014 after expansion agreement with Germany’s Robert Bosch GmbH.

Rakuten Inc declined 4.1% to 1,270 yen after the e-commerce company and the U.S.-based online cash-back-shopping site operator Ebates.com Inc negotiated a preliminary agreement for about 100 billion yen or $952 million.

Round One Corporation soared 4.3% to 747 yen after the multiple leisure facilities provider said August sales climbed 8% from a year ago month to 9.32 billion.

Revenues from Amusement segment climbed 12.9%, Karaoke jumped 10.6% and Spo-cha segment soared 19.8% while sales from bowling business dropped 2.4% and other business declined 3.9% from a year-ago period.

Wowow Inc soared 7% to 4,700 yen after Japan’s Kei Nishikori made it to finals of the U.S. Open tennis tournament. The satellite TV operator has rights to broadcast the tournament.