Japan's Current Account Surplus Narrows, Torray in $1.3 B Deal with Boeing

Hiruki Nakamura
10 Nov, 2015
New York City

Nikkei average in Tokyo edged up after pharmaceuticals and precision instruments stocks increase and current account surplus in September narrowed and bank lending in October jumped. Toray Industries signed a long-term agreement worth about 1.3 trillion yen with the Boeing Co.

[R]4:30 PM Tokyo – Nikkei average in Tokyo edged up after pharmaceuticals and precision instruments stocks increase and current account surplus in September narrowed and bank lending in October jumped. Toray Industries signed a long-term agreement worth about 1.3 trillion yen with the Boeing Co.[/R]

Banks stocks move forward in the afternoon after the regional lenders reported better-than-expected results and Prime Minister Shinzo Abe’s government plans to increase the deposit limit of saving accounts.

Pharmaceuticals and precision instruments led the gainers and pulp and paper and utilities companies led the decliners.

Stocks in Tokyo closed in a volatile session after current account surplus in September narrowed from August and overall bank lending in October jumped 2.5%.

Recruit Holdings forecasted revenues for the year to soar 19% to 1.6 trillion yen and Toray Industries signed a long-term agreement worth about 1.3 trillion yen with the Boeing Co to supply carbon fibre for the production of new Boeing 777X aircraft.

Toray also invest 50 billion yen to increase the production and stable supply of products.

The current account surplus in September narrowed to 1,468.4 billion yen from surplus of 1,653.1 billion yen in August, the Ministry of Finance said.

The adjusted current surplus declined to 776.2 billion yen from 1,590.1 billion yen in the previous month.

Overall bank lending in October jumped 2.5% to 492.611 trillion yen and unchanged from the previous month, the Bank of Japan reported.

Total lending from the trusts increased 2.3% to 64.42 trillion yen while lending from foreign banks fell 0.5% to 1.86 trillion yen.

The Nikkei 225 Stock Average edged up 28.52 to 19,671.26 and the broader Topix index slid 1.49 to 1,589.48.

The yen weakened to 123.32 against a dollar.

Stocks in Review

Daifuku Co., Ltd jumped 2.3% to 1,892 yen after the material handling equipment maker reported net sales in the first-half ending in September soared 23.3% from a year ago to 152.79 billion yen.

Net income in the period surged 46.8% to 6.18 billion yen compared to 4.21 billion yen and earnings per share rose to 50.79 yen from 34.60 yen.

The company forecasted net sales for the year to advance 23.5% to 330 billion yen and net income to increase 27.4% to 12.50 billion yen.

Mitsubishi Materials Corporation slipped 1.2% to 410 yen after the construction materials maker reported net sales in the first-half ending in September declined 5.5% from a year ago to 709.56 billion yen.

Net income in the period nearly doubled to 45.77 billion yen compared to 23.24 billion yen and earnings per share jumped to 34.93 yen from 17.73 yen.

The construction materials maker estimated net sales for the year to drop 2.5% to 1.48 trillion yen and net income to plunge 15.8% to 65 billion yen.

NOK Corporation dropped 2.6% to 2,977 yen after the flexible circuit boards maker said net sales in the first-half ending in September soared 22.2% from a year ago to 383.59 billion yen.

Net income in the period jumped 25.9% to 23.57 billion yen compared to 18.73 billion yen and earnings per share increased to 136.27 yen from 108.47 yen.

The company estimated net sales for the year to surge 13.5% to 787.60 billion yen while net income to drop 3.9% to 45 billion yen.

Recruit Holdings Co Ltd fell 0.5% to 3,875 yen after the staffing services provider stated reported net sales in the first-half ending in September increased 19.3% from a year ago to 736.48 billion yen.

Net income in the period surged 14.1% to 32.50 billion yen compared to 28.48 billion yen and diluted earnings per share rose to 57.48 yen from 53.75 yen.

The staffing services provider forecasted net sales for the year to soar 19.2% to 1.55 trillion yen but net income to slump 6.7% to 65 billion yen.

Suruga Bank Ltd gained 0.5% to 2,407 yen after the banking services provider said net sales in the first-half ending in September advanced 9.8% from a year ago to 69.43 billion yen.

Net income in the period soared 23.5% to 18.99 billion yen compared to 15.37 billion yen and diluted earnings per share increased to 79.93 yen from 64.83 yen.

The bank estimated revenues for the year to increase 2.5% to 134.50 billion yen and net income to jump 7.3% to 35.30 billion yen.

Toray Industries Inc decreased 0.6% to 1,092 yen after the diversified group reported net sales in the first-half ending in September jumped 8.5% from a year ago to 1.03 trillion yen.

Net income in the period jumped 19.8% to 49.45 billion yen compared to 41.27 billion yen and diluted earnings per share gained to 30.90 yen from 25.67 yen.

Toray forecasted net sales in the year of about 2.20 trillion yen and net income of about 90 billion yen.

Separately, the company signed a long-term agreement worth about 1.3 trillion yen or $11 billion with the U.S.-based diversified conglomerate The Boeing Co to supply carbon fibre for the production of the new Boeing 777X aircraft.

Toray also intends to invest approx 50 billion yen in new construction facility for an integrated production to increase the production and stable supply of products.

Toray will commence production of “Torayca prepreg” for Boeing in 2019.