Japanese Exports Drop 40.9%

123jump.com Staff
24 Jun, 2009
New York City

Japanese exports fell 40.9% in May after falling 39.1% in April. The decline in exports to Asia and the U.S. was larger than expected. Investors overlooked the exports weakness and bid up electronics and machinery makers. Retailers fell on the worries that consumer spending is uncertain.

[R]7:00 PM Tokyo, 6:00 AM New York – Japanese exports fell 40.9% in May after falling 39.1% in April. The decline in exports to Asia and the U.S. was larger than expected. Investors overlooked the exports weakness and bid up electronics and machinery makers. Retailers fell on the worries that consumer spending is uncertain.[/R]

Stocks in Japan closed higher despite a larger than expected decline in exports. Retailers also plan to cut prices as demand remains weak and consumer spending is still sluggish. Aviation parts makers fell after Boeing said that its latest plane Dreamliner will be delayed for the fifth time.

The Nikkei 225 Index in Tokyo closed higher 40.71 or 0.43% to 9,590.32 and yen declined to 95.70 against one dollar.

The Ministry of Finance reported that Treasury bills auction today drew bids of 19.84 trillion yen of which 5.33 trillion yen were accepted with weighted average yield of 0.1583%.

May Exports Fall

Exports from Japan dropped 40.9% in May from a year ago after falling 39.1% in April. The deeper decline in exports surprised many trade analysts and economists. The final demand to the U.S. and developed nations in Europe is weaker than expected. Auto and electronics exports are still falling.

Exports declined 40.9% to 4.02 trillion yen and imports fell 42.4% to 3.7 trillion and trade balance in the month fell 12% to 299 billion yen, according to the Ministry of Finance in Tokyo.

The demand in the U.S., Asia and Europe remained weak. Exports to China fell 29.7% to 815 billion yen, to Western Europe declined 43.2% to 545 billion yen and to the U.S. dropped 45.4% to 644 billion yen.

Gainers & Losers

Investors shrugged of the latest trade report and bid up exporters of electronics and machinery makers.

Fanuc Ltd soared 4.8% to 7,500 yen, Canon increased 2.6% to 3,200 yen and Showa Shell surged 6.1% to 1,043 yen. Citizens Holdings increased 7.2% to 474 yen and Furukawa Electric added 7.4% to 408 yen.

Toray industries fell 1.3% to 454 yen.

Retailers declined. J Front Retailing dropped 3.5% to 410 yen, Seven & I Holdings decreased 2.2% to 2,230 yen, Takashimaya edged lower 1.4% to 710 yen and Fast Retailing declined 1.2% to 12,100 yen.

UNY Company Limited declined 3.4% to 803 yen and Aeon Company Limited fell 2.9% to 932 yen.

Softbank Corp surged 6.4% to 1,814 yen after the chief executive of the company said that the company will increase dividend in 2011 and 2014.

Nikkei 200 Average Movers

CSK Holdings Corporation led the decliners in the Nikkei 225 index of 5.7% followed by losses in Shinsei Bank, Limited of 5.2%, in GS Yuasa Corporation of 4.3%, in Sumitomo Realty & Development Co Ltd of 4.2% and in J Front Retailing Co Ltd of 3.5%.

Fujikura Ltd led gainers in the Nikkei 225 index with a rise of 10.6% followed by gains in NSK Ltd of 8.3%, in Furukawa Electric Co Ltd of 7.3% and Citizen Holdings Co Ltd of 7.2%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 40.71 or 0.43% to 9,590.32, Hang Seng index in Hong Kong increased 353.78 or 2.02% to 17,892.15, CSI 300 index in China higher 36.84 or 1.19% to 3,120.73. ASX 200 index in Australia increased 10.10 or 0.27% to 3,807.00. The KL Composite index in Malaysia closed higher 13.37 or 1.28% to 1,057.85.

The Kospi Index in South Korea increased 3.25 or 0.24% to close at 1,363.79.SET index in Thailand closed higher 11.58 or 2.03% to 581.43 and JSE Index in Indonesia increased 81.29 or 4.25% to 1,995.67. The Sensex index in India increased 98.72 or 0.69% to 14,422.73.