Japan Trade Surplus Up 0.9%

123jump.com Staff
26 Mar, 2008
New York City

Trade surplus of Japan in February increased 0.9% from a year ago on rising exports to emerging markets and China. Imports increased 10.1% and exports rose 8.7%. Trade with the U.S. generated 70% of total trade surplus. Exports to the U.S. fell 6% and imports increased 3.7% generating a surplus of nearly $7 billion in the month, underscoring its dependence on the U.S. demand.

[R]5:00AM New York, 7:00PM Tokyo - Japan’s February trade surplus increases 0.9% to 970 billion yen.[/R]

Stocks in Japan fell despite a government report that showed exports, especially to emerging markets, helped offset a slowing demand in the U.S.

Market sentiment

In Tokyo trading Nikkei 225 dropped 0.3% or 38.59 to 12,706.63, and the broader Topix Index fell 0.4% or 5.43 to 1,237.55.

In the first section of the Tokyo Stock Exchange 7.3 billion shares worth 815 billion yen were traded and in the second section 170 million yen valued at 2.76 billion yen changed hands.

Of the Nikkei 225 stocks 88 rose, 124 declined and 11 were unchanged. Toho Zinc Co. Ltd. led advancers in the Nikkei 225 index shares with an increase of 7.21% after commodity prices gained.

Japan’s trade surplus widens

Japan’s Ministry of Finance reported today on its Web site that exports accelerated 8.7% to 6.98 trillion yen in February driven by demand from emerging markets such as China and India.

Imports advanced 10.1% on the year to 6.01 trillion yen, yielding a trade surplus of 0.9% at 970 billion yen.

While Japan''s trade surplus with the U.S. declined for the sixth consecutive month by 13.3% to 696.9 billion yen, the trade surplus with Asian nations including China climbed 104.8% to 922.2 billion yen, the seventh straight increase. Exports to Europe gained 7.2%.

U.S. consumer confidence declines in March

The Conference Board reported yesterday that the Consumer Confidence Index, which is based on a representative sample of 5,000 U.S. households, fell further to 64.5 in March from 76.4 in February.

The Expectations Index which measures an outlook for six months declined to 47.9 from 58.0, while the Present Situation Index fell to a 35-year low at 89.2 from 104.0 in February.

According to the report, those claiming business conditions are """"bad"""" increased to 25.4% from 21.3% and those claiming business conditions are """"good"""" declined to 15.4% from 19.1%.

Also consumers'' appraisal of the job market was more pessimistic in March than a month ago.

Japan to lose 2.6 trillion yen on gasoline tax

Bloomberg news reported today that JP Morgan Chase said in an interview that if Japan’s government fails to extend legislation on higher gasoline tax when it expires on March 31 it could lose at least 2.6 trillion in revenue.

The opposition Democratic Party of Japan, which controls the Upper House of Diet, is likely to block the extension.

Gainers & Losers

Toho Zinc Co Ltd. led advancers in the Nikkei 225 index shares with a rise of 7.21% followed by increases in Sumitomo Metal Mining of 4.63%, in Itochu Corp. of 4.39%, in Marubeni Corp. of 4.26%, and Mitsui & Co. of 4.25%.

Commodity stocks rose after a rally in metal prices yesterday. Copper futures gained 1.6% and gold advanced 1.8%. Mitsubishi Corp edged up 3.20%.

Crude oil prices also increased 0.4% to $101.22 per barrel yesterday. Inpex gained 1.87% on the news.

Citizen Holdings led decliners in the Nikkei 225 index shares with a drop of 6.75% followed by losses in Chuo Mitsui Trust of 6.10%, in Nisshinbo Industries of 5.778%, in Shionogi & Co. of 5.10%, and Mizuho Financial Holdings of 4.82%.

Other financial stocks fell as well. Mitsubishi UFJ Financial Group declined 4.82% and Mizuho Trust & Banking slid 4.46%.

Exports also declined on weakening consumer sentiment in the U.S. Canon slipped 2.93% and Sony dropped 0.70%.

Hino Motors fell 4.18% after the company reported yesterday that operating profit will rise 25% to 46 billion yen for the year ending March 31 from 36.7 billion yen a year earlier below market expectations of 46 billion yen.

Company news

The Nikkei news reported today that All Nippon Airways Co Ltd will set up a low-cost Asian airline as early as the fiscal year starting April and open office in Hong Kong. The online news service said the airline might establish a joint venture or acquire another firm.