Japan Exports Decline 6.2%; Stocks Edge Higher

Darlington Musarurwa
21 Dec, 2009
New York City

Stocks in Tokyo traded higher on the rebound in commodities prices. November exports declined 6.2% from a year ago month but edged 4.9% higher from October. Previously owned condo prices in Tokyo declined 2.4% in the month. Honda plans to add vehicle manufacturing capacity in China.

[R]5:00 AM New York, 7:00 PM Japan – Stocks in Tokyo traded higher on the rebound in commodities prices. November exports declined 6.2% from a year ago month but edged 4.9% higher from October. Previously owned condo prices in Tokyo declined 2.4% in the month. Honda plans to add vehicle manufacturing capacity in China.[/R]

Japanese stock indexes were mixed after exports fell less-than-forecasted and the Topix Index decreased led power generators and train operators.

In Tokyo trading Nikkei 225 Stock Average rose 0.4% or 41.42 to 10,183.47, and the broader Topix Index fell 0.2% to 891.48. One dollar fetched 90.30 yen.

In the first section of the Tokyo Stock Exchange 6.6 billion shares worth 405 billion yen were traded and in the second section 222 million shares valued at 2.1 billion yen changed hands.

Of the Nikkei 225 index stocks, 111 increased, 93 fell, and 21 were unchanged. Sapporo Holdings led advancers in the index shares with a rise of 4.9% followed by Sumco Corp. increasing 3.8%.

Japan’s Exports Drop 6.2% in November

Japan’s Ministry of Finance reported today that November exports fell 6.2% from a year ago, but increased 4.9% from a month earlier.

Imports tumbled 16.8%, yielding a trade surplus of 373.9 billion yen or $4.1 billion.

Exports to China rebounded, rising 7.8% in November from a 14.4% decline the previous month, while shipments to Asia edged up 4.7% after falling 15% in October.

However, U.S. exports fell 7.9% compared to a drop of 27.6% a month ago and exports to Europe tumbled 15.9% after plunging 29% in October.

Existing Condo Prices Gain 2.4% in Tokyo

Nikkei News reported Tokyo Kantei Co. said today the average price of a previously owned condominium in Tokyo metropolitan area rose 2.4% to 28.33 million yen per 70 square meters in November from the previous month.

The average price, however, fell 4.6% in November on a year-on-year basis. Prices increased 0.1% to 18.13 million yen for Osaka and Hyogo prefectures.

Japan Maintains Economic Assessment

Bank of Japan reported today in the monthly report of recent economic and financial developments December 2009 that the country’s economy is picking up, but “there is not yet sufficient support for a self sustaining recovery in domestic private demand.”

Business fixed investment is expected to remain relatively unchanged, while public investment is projected to drop gradually.

“The stimulative effects from low interest rates are still constrained given the low level of economic activity and corporate profits, but the degree of constraint has begun to moderate,” said the BoJ.

Honda to Build New Plant in China

Japan Today reported today that Honda Motor Co. intends to build a new passenger car plant in Wuhan, Hubei Province in China to increase production.

The plant is scheduled to start operations in 2011 with an annual output of more than 100,000 cars. The new plant will increase the total capacity 20% to 700,000 vehicles.

Gainers & Losers

Sapporo Holdings led gainers in the Nikkei 225 index shares with a rise of 4.9% followed by gains in Sumco Corp.of 3.8%, in UBE Industries of 3.4%, in Kikkoman Corp. of 3.3%, in Nippon Mining House of 3%.

Nippon Oil edged up 2.8% to 411 yen as crude oil prices soared 0.4% to $1,112 per barrel.

Japan Airlines led decliners in the Nikkei 225 index shares with a fall of 2.9% followed by losses in Shinsei Bank of 2.7%, in Mizuho Financial Group of 2.2%, in Fujitsu Ltd. of 2.2%, in East Japan Railways of 2.1%.

Other financial stocks fell. Fukuoka Financial tumbled 1.8% to 2,175 yen and Shizuoka Bank plunged 1.7% to 802 yen.

Mitsubishi UFJ increased 2.4% to 473 yen after the bank last week said that it plans to raise as much as 1 trillion yen.

Commodities linked stocks added after international prices of crude oil and metals gained. Inpex Corp added 1.9% to 683,000 yen and Toho Zinc Co Ltd increased 2.1% to 439 yen.

Trading companies declined. Marubeni Corp decreased 1.4% to 490 yen and Mitsubishi Corp edged lower 0.23% to 2,135 yen.

Yamaha Corp added 1.6%, Toyota Motor declined 0.5% to 3,720 yen, Nissan Motor Co decreased 0.1% to 725 yen and Honda Motor Co dropped 1.3% to 3,020 yen.