Japan Lowered GDP Rate

123jump.com Staff
07 Dec, 2007
New York City

Stocks in Japan closed higher after losing nearly 1.4% in the afternoon. Nikkei 225 increasesd 0.5% or 82.29 to close at 15,956.37 and Topix added 9.5 to 1,561.76. Of the Nikkei 225 index stocks 114 increased, 71 declined, and 10 were unchaged. Weak domestic demand pulled down the quarterly economic growth to 1.5% from 2.6%. Estimates for the exports in the quarter were revised lower.

[R]4:00AM New York, 6:00PM Tokyo - Realty, commodity and energy stocks lifts Japan 0.52%. Japan’s economy grew by revised 1.5% in third quarter. Foreign reserve assets soar to $970.1 billion.[/R]

Japan’s stocks parred a 1.4% gain by midday to close up 0.52% buoyed by rising prices of oil and metals and plans by the U.S. to freeze interest rates for five years for variable rate mortgages.

In Tokyo trading Nikkei 225 closed up 0.52% or 82.29 to 15,956.37, while the broader Topix Index rose 9.49 to 1,561.76.

In the first section of the Tokyo Stock Exchange 9.6 billion shares valued at 1.2 trillion yen were traded and in the second section 272 million shares worth 6.2 billion yen changed hands in the second section.

Of the Nikkei 225 stocks 114 rose, 71 declined and 10 were unchanged. Daiwa House Industries led gainers, rising 6.54% on plans the U.S. will freeze interest rates on variable mortgage rates and assist in refinancing into new mortgages.

Crude oil prices rose 3.1% to $90.37 per barrel after OPEC elected to keep its output quota intact. Inpex gained 2.56% and Nippon Oil Corp soared 0.11%.

Japan’s Cabinet Office reported today the economy grew by a revised annualized rate of 1.5% in the third quarter compared to the preliminary estimate of 2.6%. The statistics further showed domestic demand was revised to a decline of 0.1% from a 0.2% gain that in preliminary estimates. However, private demand was unchanged, revised downwards from the gain of 0.4% previous estimate.

Private consumption of households was unchanged in the revised figure at 0.3%. Private residential investment also slumped more at 7.9% in the third quarter as compared to previous projections of 7.8% decline, while private non-residential investment was at 1.1% from 1.7%.

Also, exports of goods and services for the three months to September were revised downwards from the gain of 2.9% to 2.6%.

Japan’s Ministry of Finance reported today that the country’s foreign reserve assets grew by $15.7 billion from the end of October to $970.1 billion as of November 30. Foreign currency reserves contributed $946 billion, securities were at $820 million, gold contributed $19.2 billion and IMF reserve position currently stands at $1.4 billion.

Of the Nikkei 225 index shares, Daiwa House Industries led advancers with a rise of 6.54%, followed by gains of 5.87% in Sumitomo Metal Industries, 5.84% in Kumagai Gumi Company, 5.57% in Tokyo Dome Corp, and 5.32% in Sumitomo Metal Mining.

Realty stocks gained after U.S. President Bush announced plans negotiated by U.S Treasury Henry Paulson and financial companies to freeze interest rates on variable rate mortgages, and also plans to assist refinancing new mortgages and obtaining loans guaranteed by Federal Housing Administration.

Exporters gained as the yen continued to slide, falling to 111.26 at the close of trade today from 110.94 yesterday. Canon Incorporated rose 0.51%, Komatsu Limited edged up 2.53% and Toyota Motor Corporation climbed 1.60%.

Yokogawa Electric Company led decliners with a fall of 3.97% followed by losses in Kyowa Hakko Kog of 2.97%, in Chugai Pharmaceutical Company of 2.97%, in Mitsubishi UFJ Nicos of 2.83%, and In Daiichi Sankyo of 2.53%.

Softbank Corporation reported today the company added 33,000 new customers in November, NTT DoCoMo in the month added 58,100, and KDDI increased 25,100 after the law allowing customers to keep the number even if they change the carrier. Softbank however closed 0.38% down.

Nikkei news reported today that Sumitomo Chemical Company is in talks to build a 200 billion yen plant in Saudi Arabia by 2012. The company closed 1.66% up.