Japan Stocks Down; Exports Plunge 13.8%

123jump.com Staff
12 Mar, 2009
New York City

Japan stock indexes fell after the country

[R]5:00AM New York, 7:00PM Tokyo- Japan’s gross domestic product fall a revised 12.1% in December quarter.[/R]

Japan stock indexes fell markedly after the country’s economic growth decreased the most since 1974 in the three months ended December.

Market jitters were also induced by declining energy stocks after crude oil prices slipped 2.7%.

In Tokyo trading Nikkei 225 index fell 2.4% or 177.87 to 7,198.25, and the broader Topix Index shed 3% or 21.35 to 700.93.

In the first section of the Tokyo Stock Exchange 9.7 billion shares worth 642 billion yen were traded and in the second section 52.2 million shares valued at 1.2 billion yen changed hands.

Of the Nikkei 225 index stocks, 33 rose, 183 declined, and 9 were unchanged. Sumco Corp. led gainers in the index shares with a rise of 3.6%.

Japan’s GDP Contracts Revised 12.1% in December

Japan’s cabinet office reported today that the country’s gross domestic product contracted a revised 12.1% on an annualized basis in the December quarter from a decline of 12.7% projected in the preliminary report.

Inventories in the period were revised up to 0.5% from an initial 0.4%.

The economy also shrank 3.2% from the previous quarter from a preliminary estimate of a 3.3% decline, representing the steepest decline since 1974.

In nominal terms, Japan’s economy contracted for the third straight quarter, falling 1.6% from the previous quarter in the three months to December and plunging 6.4% on an annualized basis, compared with a quarterly drop of 1.7% and annualized 6.6% decline earlier reported.

According to the report, consumer spending fell 0.4% in the review period, while corporate spending tumbled 5.4% from a quarter earlier.

Exports plunged 13.8% and imports increased 3% from the previous quarter. However, public investment increased 0.1% and housing investment climbed 5.7%.

Sompo Japan, Nipponkoa Consider Merger

Nikkei News reported today that casualty insurers Sompo Japan and Nipponkoa, which are seeking a merger, are currently studying the possibility of integrating their computer systems at an early date in order to save costs.

Announcement on a merger under a holdings company structure by 2010 will be made tomorrow.

Yen Rises

The yen rose to 95.96 against the dollar from 98.34 yesterday.

Gainers & Losers

Sumco Corp. led advancers in the Nikkei 225 index shares with a rise of 3.6% followed by increases in Takara Holdings of 3.5%, in Sumitomo Osaka of 3.2%, in Shionogi & Co. of 2.7%, and Sompo Japan Insurance of 2.6%.

Softbank Corp. led decliners in the Nikkei 225 index shares with a decline of 8.8% followed by losses in Resona Holdings of 8.2%, in Fuji Heavy Industries of 7.7%, in Mitsui Sumitomo of 7.5%, and Sumitomo Metal Industries of 6.8%.

Energy stocks tumbled after crude oil prices slipped 2.7% to $44.5 per barrel. Nippon Mining House fell 6.5% and Index declined 5.1%.

Seiko Epson to Sell Assets to Sony

Nikkei News reported today that Seiko Epson Corp. is engaging Sony Corp. in order to explore ways of selling part of its LCD display assets.