CPI Falls in Japan; Bridgestone Surges

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

Consumer prices in Japan fell sharply in April sparking worries that deflation may be anchored in the economy. The fall in exports, weak job markets and weak consumer demands are spurring price declines. Bridgestone revised its outlook for first half loss. Nippon Electric estimated Q1 profit.

[R]8:00 PM Tokyo, 7:00 AM New York – Consumer prices in Japan fell sharply in April sparking worries that deflation may be anchored in the economy. The fall in exports, weak job markets and weak consumer demands are spurring price declines. Bridgestone revised its outlook for first half loss. Nippon Electric estimated first quarter operating profit.[/R]

The consumer prices in Japan are still falling and in April the decline accelerated. With weak exports and falling employment retailers are still struggling with sales and forced to lower prices.

The consumer prices index in May declined 0.2% from April and 1.1% from a year ago and the index for Ku-area of Tokyo decreased 0.4% from April and 1.5% from a year ago.

The index excluding fresh food decreased 0.2% from April and declined 1.5% from a year ago.

The Nikkei 225 Index in Tokyo closed higher 81.31 or 0.83% to 9,877.39 and for the week the index increased 0.9%.

Gainers & Losers

Of the stocks in Nikkei 225 Average, 160 increased, 50 decreased and 15 were unchanged.

Tire makers gained after Bridgestone revised its earnings outlook. Bridgestone surged 8.5% to 1,520 yen after it lowered its estimated fiscal sales of 2.6 trillion yen and ordinary income of 24 billion yen. The revised forecast is based on 19% decline in sales from a year ago and exchange rate of 95 yen.

For the first half the operating loss is expected to be 28 billion yen compared to 40 billion yen estimated on May 8. Net loss per share is expected to be 58.65 yen compared to 79.05 yen. In the first half of 2008 the tire maker earned 68.6 billion yen.

Yokohama Rubber and Sumitomo Rubber Industries increased nearly 8%.

Pioneer Corp surged 10.4% to 297 yen and Kubota Corp added 7.2% to 815 yen.

Real estate linked stocks closed higher. Tokyu Land Corp increased 6.3% to 461 yen and Nippon Express increased 4.4% to 423 yen.

Nippon Electric surged 6.3% to 1,054 yen after the company indicated positive outlook for LCD glass and estimated operating earnings for the first quarter ending in June of 10 billion yen.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 81.31 or 0.83% to 9,877.39, Hang Seng index in Hong Kong increased 325.23 or 1.78% to 18,600.26, CSI 300 index in China higher 10.50 or 0.34% to 3,128.42. ASX 200 index in Australia increased 47.80 or 1.24% to 3,903.80. The KL Composite index in Malaysia closed higher 1.66 or 0.15% to 1,075.77.

The Kospi Index in South Korea increased 1.80 or 0.13% to close at 1,394.53.SET index in Thailand closed higher 5.20 or 0.88% to 595.80 and JSE Index in Indonesia decreased 3.98 or 0.19% to 2,040.19. The Sensex index in India increased 419.02 or 2.92% to 14,764.64.