Current Account Surplus, Inflation Rise

123jump.com Staff
14 May, 2008
New York City

Stocks in Japan traded in positive territory after NTT and Astellas Pharmacies increase dividends and share buyback. In Tokyo trading Nikkei 225 rose 1.18% or 164.82 at 14,118.55, and the broader Topix Index increased 1% or 12.99 at 1,373.04. The Bank of Japan reported that the Domestic Corporate Goods Price Index rose 3.7% from a year ago at 107.3 after adding 3.9% in March.

[R]5:00AM New York, 7:00PM Tokyo - Japan’s corporate goods price index rise to 3.9% in April. Current account surplus advance 16.1% in fiscal 2007

Stocks in Japan traded in positive territory after NTT and Astellas Pharmacies increase dividends and share buyback.

Market sentiment

In Tokyo trading Nikkei 225 rose 1.18% or 164.82 at 14,118.55, and the broader Topix Index increased 1% or 12.99 at 1,373.04. In the first section of the Tokyo Stock Exchange 9.4 billion shares worth 1.1 trillion yen was traded and in the second section 193 million shares valued at 6 billion yen changed hands.

Of the Nikkei 225 index stocks, 158 gained, 59 declined, and 8 were unchanged. Nippon Telegraph and Telephone led gainers in the index shares with a rise of 11.16% after raising its dividend by 22%.

Japan wholesale prices rise to 3.9% in April

The Bank of Japan reported today on its Web site that the Domestic Corporate Goods Price Index rose 3.7% from a year ago at 107.3. The index had risen 3.9% in March. Petroleum and coal products costs, rose 19.6% from a year earlier, and steel prices increased 15.6% largely contributed to the index’s gain.

The Export Price Index increased 2.5% to 102 from 1.4% on March, while the Import Price Index rose 22.6% in April from 21.6% in March at 137.6. Also costs of processed food jumped 3.9% in the month.

The Bank of Japan noted that April corporate goods prices advanced 0.6% from March.

Current account surplus gains 16.1% in fiscal 2007

Ministry of Finance reported today that the country’s current account surplus grew 16.1% to 24.55 trillion yen in fiscal 2007 through March 31 from a year earlier on higher income account surplus.

The income account from Japan’s overseas investments climbed to a record high surplus on an increase of 17.6% from the previous year to 16.7 trillion yen.

Mitsubishi UFJ to post 300 billion yen in valuation losses

The Mainichi newspaper reported today that Mitsubishi UFJ Financial Group may post 300 billion yen in valuation losses on asset backed securities for the year ended March 31. The bank had estimated in January that subprime losses in the year would top 95 billion yen.

Gainers & Losers

Nippon Telegraph and Telephone led advancers in the Nikkei 225 index shares with a rise of 11.16% followed by increases in Okuma Corp. of 9.31%, in Tokyo Dome Corp. of 8.86%, in Tokai Carbon Co. of 8.13%, and Takara Holdings of 7.78%.

Astellas Pharmacies rose 3.12% after reporting that the company will spend 40 billion yen to buy back shares.

Pioneer Corp. led decliners in the Nikkei 225 index shares with a drop of 17.51% followed by losses in Nitto Boseki Co. of 10.02%, in NTN Corp. of 4.20%, in Taiheiyo Cement of 3.42%, and Comsys Holdings of 3.26%.

Pioneer Corp. plunged the most since September 1991 after reporting that net loss in the year to March 2009 will be 19 billion yen on increasing costs to restructure the electronics division. Analysts estimate that the company’s net profit would be 5.3 billion yen in the period.

Financial stocks also fell as well after Moody''s Investors Service said yesterday deepening losses at MBIA Inc. and Ambac Financial Group Inc. might compromise their AAA credit ratings. Bond insurance companies may need to raise capital.

Mainichi news reported that Mitsubishi UFJ may take a write down 300 billion yen valuation losses in asset backed securities. Mitsubishi UFJ Financial Group fell 2.23% and Nomura declined 1.96% as a result.