5th Monthly Current Account Surplus in Japan, Nikkei Eases

Hiruki Nakamura
13 Jan, 2015
New York City

Nikkei index in Tokyo closed lower and the yen traded around 119 against one dollar. Japan reported better-than-expected current account balance, fifth monthly surplus in a row. Aeon plunged 6% after the supermarket operator reported 72% plunge in operating profit.

[R]4:30 PM Tokyo – Nikkei index in Tokyo closed lower and the yen traded around 119 against one dollar. Japan reported better-than-expected current account balance, fifth monthly surplus in a row. Aeon plunged 6% after the supermarket operator reported 72% plunge in operating profit.[/R]

Market indexes in Tokyo eased and the yen traded below its three month average as investors focused on the fall in crude oil price.

The Ministry of Finance reported current account surplus in November declined to 433 billion from 833.4 billion yen surplus in October but reversing a deficit of 596.9 billion yen a year ago month.

The current account was in surplus for the fifth month in a row.

The trade balance was in deficit of 636.8 billion yen in the month compared to 766.6 billion yen deficit in the previous month.

Imports in the month jumped 2.2% to 6.959 trillion yen, lower from the 7.4% increase in October and exports in November surged 10.8% to 6.322 trillion yen, easing from the 11.2% surge in October.

Separately, the Bank of Japan announced bank lending in December rose 2.7% to 422.604 trillion yen easing from the 2.8% increase in November.

The Nikkei 225 Stock Average slipped 110.02 or 0.6% to 17,087.71 and the broader Topix index fell 5.89 to 1,374.69.

The yen strengthened to 119.30 against one dollar.

China’s exports in December increased 9.9% and imports gained 2.3% from a year ago month. The trade surplus in the month increased to US$49.5 billion.

Stocks in Review

Aeon Kyushu Co Ltd rose 0.2% to 1,760 yen after the general retailer said revenues in the nine-month ending in November slipped 1.2% to 178.09 billion yen from 180.28 billion yen a year ago period.

Net loss in the period widened to 2.39 billion yen compared to 1.53 billion yen and loss per share increased to 127.42 yen from 81.43 yen in the same period a year ago.

Central Security Patrols Co Ltd closed unchanged at 1,159 yen after the security service provider stated net sales in the nine-month ending in November jumped 2.5% to 31.39 billion yen from 30.62 billion yen a year ago period.

Net income in the period climbed 4.2% to 497 million yen compared to 477 million yen and earnings per share increased to 34.48 yen from 33.18 yen in the same period a year ago.

Ichigo Group Holdings Co Ltd slid 0.4% to 236 yen after the real estate developer reported revenues in the third-quarter ending in November plunged 48.6% to 14.75 billion yen from 28.68 billion yen a year ago period.

Net income in the quarter fell 3.6% to 3.56 billion yen compared to 3.69 billion yen and diluted earnings per share decreased to 7.10 yen from 8.10 yen in the same period a year ago.

Skymark Airlines Inc jumped 1.7% to 363 yen after the airline company said overall seat occupancy rate in December dropped to 54.5%, a decrease 5.6 percentage points from a year ago month and the lowest for the month since 2010.