Service Sector Gains, Tokyo Stocks Fall

123jump.com Staff
17 Jun, 2008
New York City

The service sector rose 1.8% according to an index tracked by the MITE. The Ministry of Industry Trade and Economy said that the Indices of Tertiary Industrial Activity rose 1.8% in April to a seasonally adjusted 110.4. Information and communication segment surged by 9.6% and retail trade rose at 1.5%. Tokyo Dome Corp. led advancers in the Nikkei 225 index shares with a rise of 15.13% followed by rises in Denki Kagaku Kogyo KK of 6.9% and in Chiyoda Corp. of 4.9%.

[R]5:00AM New York, 7:00PM Tokyo – Service sector grows 1.8% in April.[/R]

Stocks in Japan edge lower as investors took profit and crude oil price in the region declined.

Market sentiment

In Tokyo trading Nikkei 225 fell 0.04% or 6 to 14,348.37, and the broader Topix Index rose 0.02% or 0.29 at 1,401.98.

In the first section of the Tokyo Stock Exchange 9 billion shares valued at 967 billion yen were traded and in the second section 192 million shares valued at 4 billion yen changed hands.

Of the Nikkei 225 stocks 109 gained, 106 declined, and 10 were unchanged. Tokyo Dome Corp. led advancers in the index shares with a rise of 15.13% followed by Denki Kagaku increasing 6.88% after JP Morgan Chase & Co upgraded the stock to “overweight”.

Service sector grows by 1.8% in April

The Ministry of Industry Trade and Economy said that the Indices of Tertiary Industrial Activity rose 1.8% in April to a seasonally adjusted 110.4.

Industries that contributed to the increase were information and communications rising 9.6% followed by increases in wholesale and retail trade of 1.5%, in electricity, gas, heat supply and water of 2% and in transport and real estate gains of 0.9% in each sector.

Services and medical, health care and welfare rose 0.3% and 0.4% respectively.

Industries that contributed to the slump were compound services falling 5.6% followed by declines in eating and drinking places of 0.9%, in learning support of 4.3% and finance and insurance of 0.1%.

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Gainers & Losers

Tokyo Dome Corp. led advancers in the Nikkei 225 index shares with a rise of 15.13% followed by rises in Denki Kagaku Kogyo KK of 6.88%, in Chiyoda Corp. of 4.96%, in Kajima Corp. of 4.91%, and Pioneer Corp. of 4.78%.

Tokyo Dome increased after declining oil prices eased inflation worries.

Denki Kagaku KK rose as JP Morgan Chase & Co. upgraded the stock to “overweight”.

Power utilities also gained as crude oil for July delivery fell to $133.50 a barrel from yesterday''s record of $139.89 as Saudi Arabia said it will increase production.

Mazda Motor led decliners in the Nikkei 225 index shares with a fall of 3.47% followed by Mitsumi Electric Co. of 3.39%, in Sumitomo Metal Industries of 2.76%, in Kobe Steel of 2.60%, and Isetan Mitsukoshi of 2.39%.

Kobe Steel fell as Mizuho Securities cut the stock to “hold” from “buy”.

Exporters also slumped as the yen fell from 108.20 by midday to 107.90 at the close of trade. Nikon Corp tumbled 2.01%, Honda dipped 1.82% and Casio Computer shed 1.88%.

Asian markets review

In Tokyo Nikkei 225 Index closed lower 6.00 or 0.04% to 14,348.37, in Hong Kong Hang Seng index increased 28.30 or 0.12% closed to 23,057.99. In Australia ASX 200 index higher 51.00 or 0.95% to close 5,422.70. In Malaysia KL Composite index decreased 10.30 or 0.83% closed to 1,227.76.

In South Korea Kospi Index decreased 10.11 or 0.57% to close at 1,750.71, in Thailand SET index closed lower 10.42 or 1.32% to 777.17 and Indonesia JSE Index edged decreased 20.07 or 0.84% to 2,377.98. Sensex index in India increased 301.08 or 1.96% to 15,696.90.