Trade Deficit in Japan Plunges in April, Nikkei Advances

Hiruki Nakamura
25 May, 2015
New York City

Nikkei average in Tokyo closed higher and April month trade deficit tumbled after exports to the U.S. and the European Union advanced. Takata Corp declined after Mazda said it will recalls vehicles in Australia to fix airbag related problems.

[R]4:30 PM Tokyo – Nikkei average in Tokyo closed higher and April month trade deficit tumbled after exports to the U.S. and the European Union advanced. Takata Corp declined after Mazda said it will recalls vehicles in Australia to fix airbag related problems.[/R]

Markets in Japan closed higher and April month trade deficit tumbled after exports rose and imports declined.

The trade deficit in April tumbled 93.5% to 53.4 billion yen compared to 227.4 billion yen surplus in March and from 825.5 billion yen deficit from a year ago month, the Ministry of Finance said.

In April, exports climbed 8% to 6.55 trillion yen while imports declined 4.2% to 6.6 trillion yen.

Exports to the U.S. surged 21.4% to 1.36 trillion yen from a year ago month while exports to the European Union increased 0.8% to 639.25 billion yen.

Exports to Asia climbed 6% to 3.46 trillion yen while exports to China jumped 2.4% to 1.12 trillion yen.

Imports from the U.S. soared 23.9% to 714.13 billion yen while imports from the European Union increased 1.2% to 674.53 billion yen.

The Nikkei 225 Stock Average gained 149.36 or 0.7% to 20,413.77 and the broader Topix index increased 11.30 to 1,659.15.

The yen closed at 121.62 against a dollar.

Stocks in Review

Prima Meat Packers Ltd plunged 6.4% to 354 yen after the food products maker plans to raise up to 10.1 billion yen through a stock offering and private placement.

Suntory Beverage & Food Ltd slipped 1.7% to 5,160 yen after the beverages and food maker agreed to acquire about 260,000 machines from Japan Tobacco Inc. for about 150 billion yen or $1.2 billion.

Takata Corporation declined 4.3% to 1,305 yen after the Mazda Motor Corp and Mitsubishi Motors Corp will recall about 630,000 more vehicles from Australia and domestic market.

Tokyo Electric Power Company, Inc surged 6.7% to 624 yen after the Nikkei news reported electric power supplier and Mitsubishi Corporation signed a 25-year power and water purchase agreement for about 300 billion yen with Qatar General Electricity and Water Corporation and K1 Energy.

The agreement is to build and run 2.4 million kilowatts gas-fired power plant and water desalinate plant in Qatar. In the partnership, Mitsubishi will hold 98.5% stake and TEPCO will own 1.5%.

Yamada Denki Co Ltd gained 1.7% to 534 yen after the Nikkei news said home appliances retailer said it will close at least 40 stores by the end of this month but forecasted sales in the current fiscal year of about 1.69 trillion yen but net profit is expected to triple from a year ago.