Current Account Surplus Widens in Japan, Softbank Net Rises 29%

Hiruki Nakamura
13 May, 2015
New York City

Market indexes in Japan lacked direction and current account in March widened to the largest since 2008. Separately, finance ministry said seasonally unadjusted exports increased 6.2% and imports declined 0.6%. Softbank annual net soared 29%.

[R]4:30 PM Tokyo – Market indexes in Japan lacked direction and current account in March widened to the largest since 2008. Separately, finance ministry said seasonally unadjusted exports increased 6.2% and imports declined 0.6%. Softbank annual net soared 29%.[/R]

Market indexes in Tokyo traded volatile and investors focused on latest earnings releases and investors remained optimistic that the Bank of Japan will continue to buy stocks.

After the close, Bank of Japan bought 36.1 billion yen of index focused Exchange Traded Fund on Tuesday.

Current account surplus in March surged more than five-fold to 7.81 trillion yen from 1.47 trillion yen a year ago month. The surplus was the widest since 2008.

Export in the month climbed 8.4% to 75.61 trillion yen compared to 69.75 trillion yen in the same month a year ago, the Finance Ministry said.

Total imports in March jumped 1.8% to 82.18 trillion yen from 80.77 trillion yen in March 2014.

Separately ministry said export in first 20 days of April climbed 6.2% to 4.14 trillion yen and imports dropped 0.6% to 4.41 trillion yen from a year ago month.

The provisional data are not adjusted for season factors.

The Nikkei 225 Stock Average jumped 139.88 or 0.7% to 19,764.72 and the broader Topix index rose 1.94 to 1,604.21.

The yen closed at 119.85 against a dollar.

Stocks in Review

Japan Display Inc climbed 3.3% to 506 yen after the mobile displays maker reported net sales in the year ending in March surged 25.2% to 769.30 billion yen from 614.57 billion yen in a year ago period.

Net in the year swung to a loss of 12.27 billion yen compared to profit of 33.92 billion yen and diluted loss per share swung to a 20.42 yen from diluted earnings per share of 133.19 yen in the same period a year ago.

For the fiscal first-quarter, Japan Display forecasted net sales to soar 91.7% to 240 billion yen from 125.16 billion yen in the same period a year ago.

Konica Minolta Inc gained 1.3% to 1,355 yen after the electronic products maker said net sales in the year ending in March climbed 7.2% to 1.01 trillion yen from 943.76 billion yen in a year ago period.

Net income in the year surged 49.6% to 32.71 billion yen compared to 21.86 billion yen and diluted earnings per share increased to 64.55 yen from 41.28 yen in the same period a year ago.

The electronics maker estimated net sales for the year ending in March 2016 jump 10% to 1.10 trillion yen and net income of about 50 billion yen.

Mitsui Fudosan Co., Ltd jumped 2.1% to 3,595 yen after the real estate developer stated net revenues in the year ending in March rose 0.9% to 1.53 trillion yen from 1.52 trillion yen in a year ago period.

Net income in the year soared 30.4% to 100.18 billion yen compared to 76.84 billion yen and diluted earnings per share climbed to 103.81 yen from 87.44 yen in the same period a year ago.

Mitsui Fudosan forecasted revenues for the year ending in March 2016 jump 5.3% to 1.61 trillion yen and profit to surge 6.8% to 107 billion yen.

Nissan Motor Co Ltd fell 0.9% to 1,246.50 yen after the automaker reported net revenues in the year ending in March climbed 8.5% to 11.38 trillion yen from 10.48 trillion yen in a year ago period.

Net income in the year surged 17.6% to 457.57 billion yen compared to 389.03 billion yen and diluted earnings per share jumped to 109.14 yen from 92.82 yen in the same period a year ago.

The company forecasted net revenues for the year ending in March 2016 advance 6.4% to 12.10 trillion yen and net income to jump 6% to 485 billion yen.

Nissan estimated sales for the fiscal 2015 to increase 4.4% to 5.55 million vehicles and sales in North America to jump 4.9% to 1.92 million vehicles from a year ago period.

European sales are forecasted to climb 4.6% to 790,000 vehicles and sales in Asia Pacific region are estimated to surge 40.9% to 2.24 million vehicles.

However domestic sales in the year are estimated to decline 3.7% to 600,000 vehicles from a year earlier.

Recruit Holdings Co Ltd increased 1.9% to 3,970 yen after the staffing services provider reported net sales in the year ending in March soared 9.1% to 1.30 trillion yen from 1.19 trillion yen in a year ago period.

Net income in the year climbed 6.5% to 69.70 billion yen compared to 65.42 billion yen and diluted earnings per share rose to 127.68 yen from 126.64 yen in the same period a year ago.

The company estimated net sales for the year ending in March 2016 surge 19.2% to 1.55 trillion yen and net income to decline 6.7% to 65 billion yen.

Sumitomo Mitsui Financial Group, Inc dropped 2.6% to 5,258 yen after the banking services provider reported revenues in the year ending in March jumped 4.5% to 4.85 trillion yen from 4.64 trillion yen in a year ago period.

Net income in the year plunged 9.8% to 753.61 billion yen compared to 835.36 billion yen and diluted earnings per share slumped to 550.85 yen from 611.14 yen in the same period a year ago.

SoftBank Corp fell 0.3% to 7,330 yen after the communication services provider said revenues in the year ending in March soared 30.1% to 8.67 trillion yen from 6.67 trillion yen in a year ago period.

Net income in the year surged 28.5% to 668.36 billion yen compared to 520.25 billion yen and diluted earnings per share jumped to 558.75 yen from 434.68 yen in the same period a year ago.