Exporters, Shippers Rebound in Tokyo

123jump.com Staff
18 Apr, 2008
New York City

Stocks in Japan edged higher on the optimism that global economy may not weaken further. Nikkei 225 rose 0.6% to 13,476.45, a 1.2% gain for the week, and the broader Topix Index increased 0.8% to 1,304.06. The yen weakened further to close at 102.36 yen to a dollar. Shipping lines, banks and export sensitive stocks close higher. The Bank of Japan in its region survey noted that eight of the nine regions are experiencing sluggish economic activities.

[R]5:00AM New York, 7:00PM Tokyo – Continued weakness in yen and optimism on global markets leads Tokyo to a weekly gain of 1.2%.[/R]

Stocks in Japan closed the week up after a sliding yen reversed losses in the morning on rising optimism on the future of the global economy.

In Tokyo trading Nikkei 225 rose 0.58% or 78.15 to 13, 476.45, a 1.2% gain for the week, and the broader Topix Index increased 0.8% or 10.74 to 1,304.06.

In the first section of the Tokyo Stock Exchange 6.6 billion shares worth 786 billion yen were traded and in the second section 414 million shares valued at 11 billion yen changed hands.

Of the Nikkei 225 stocks 131 gained, 81 declined, and 13 were unchanged.

Kawasaki Kisen led advancers in the index shares with a rise of 6.91% on resurgent optimism on the health of the world economy.

Economic growth in regions soars

The Bank of Japan reported today in its Regional Economic Report that the economy is each of the nine provinces is slowing.

The report further notes that as exports continue to increase, business sentiment has become cautious due to high raw material and energy costs. The pace of increase in business fixed investment has slowed in many regions.

Private consumption remains firm and housing investment, however, remained at a low level, although there were signs of recovery. In addition, production was recently flat.

Assessments of the regions show that eight out of nine regions revised their assessments slightly downward on sluggish corporate activities including production and business fixed investment.

Only Hokkaido maintained its previous economic assessment but cautioned that economic activity is sluggish.

According to the report, private consumption was gradually increasing in the Kanto-Koshinetsu region, while other regions reported that it was """"firm"""" or """"flat.""""

Food sales and sales of household electrical appliances including digital appliances such as flat-panel televisions continued to be favorable.

Compared with the previous January 2008 assessment of business fixed investment, Hokuriku, Kanto-Koshinetsu, Tokai, Kinki, and Shikoku revised their assessments downward.

In terms of production, Hokkaido revised its assessment slightly upward, while Tokai revised its assessment downward and Tohoku, Kanto-Koshinetsu, Kinki, Chugoku, and Kyushu-Okinawa revised their assessments slightly downward.

Regional difference were notable in employment with Kanto-Koshinetsu, Tokai, Kinki, Chugoku, and Shikoku reporting that it continued to improve or that the ratio of job offers to applicants was relatively high, while Hokkaido, Tohoku, Hokuriku, and Kyushu-Okinawa reported that it remained flat or the improvement became modest.

Tohoku, Kanto-Koshinetsu, Tokai, and Shikoku reported that household income was gradually increasing, improving, or recovering. Hokuriku, Kinki, and Chugoku reported that it was around the previous year''s level, firm or remaining flat.

Meanwhile, Hokkaido reported that it was """"sluggish,"""" and Kyushu-Okinawa reported that household income has stopped recovering.

Gainers & Losers

Kawasaki Kisen led advancers in the Nikkei 225 index shares with a rise of 6.91% followed by in Hino Motors of 6.79%, in Mazda Motors of 5.88%, in Sumitomo Chemical Co of 5.79%, and Mitsubishi Paper of 5.24%.

Shipping lines and carmakers increased on both renewed confidence on the resilience in the global economy and a weakening yen at 102.36 at the close of trade.

Clarion Co. Ltd led decliners in the Nikkei 225 index shares with a drop of 5.24%, in Chiyoda Corp. of 3.41%, in Shionogi & Co 3.08%, in Astellas Pharmacies of 2.86%, and Daiichi Sankyo of 2.52%.