Nikkei in Tokyo Drops 1.5%, Exports Surge

Mayank Mehta
24 Feb, 2010
New York City

Japan exports in January surged 40.9% and recorded a trade surplus of 85.2 billion yen defying the expectations of deficit. Exports to Asia increased 68%. Showa Shell Sekiyu K.K led the decliners in the Nikkei 225 Stock Average with a loss of 9.8%.

[R]8:30 PM Tokyo, Japan – Japan exports in January surged 40.9% and recorded a trade surplus of 85.2 billion yen defying the expectations of deficit. Exports to Asia increased 68%. Showa Shell Sekiyu K.K led the decliners in the Nikkei 225 Stock Average with a loss of 9.8%.[/R]

Stocks in Tokyo trading fell after the U.S. consumer confidence declined to 10-month low in February and the number of U.S. bank failures peaked in 2009 to 17-year high.

The Nikkei 225 Index in Tokyo closed lower 153.27 or 1.48% to 10,198.83 and of the stocks in Nikkei 225 Stock Average, 18 increased, 198 declined and 9 was unchanged.

In the first section of the Tokyo Stock Exchange 8.3 billion shares worth 579 billion yen were traded and in the second section 98 million shares valued at 1.2 billion yen changed hands.

Of the Nikkei 225 index stocks, 18 rose, 198 fell, and 9 were unchanged. Nippon Light Metal led gainers in the index shares with a rise of 5.6%.

The Federal Deposit Insurance Corp, the U.S. government agency that insures bank deposits in its quarterly report said “problem” banks at the end of fourth quarter have increased 27% to 702 banks with $402.8 billion in assets from 552 banks with $345.9 billion in assets.

Japan exports in January surged 40.9% from a year ago when they tumbled 45.7%. In the month Japan recorded a trade surplus of 85.2 billion yen. Imports increased 8.6%, the monthly increase in fifteen months.

Exports to Asia increased 68.1% in the month and to China increased 79.9% from a year ago. Shipments to the U.S. increased at a slower pace to 24.2% and to Europe gained 11.1%.

Exporters, automakers and resource sectors linked stocks declined.

Corporate Services Fall 0.1% in January

Bank of Japan reported today in its monthly report that the Corporate Services Price Index fell 1% from a year ago and decreased 0.4% to 97.4 in January from the same period a year earlier.

The central bank noted that prices for transportation increased 0.5%; leasing and rental 0.02%; advertising services 0.01%; finance and insurance 0.01%; information and communications 0.06%, other services 0.02%.

However, real estate services tumbled 0.01%.

Nikkei Movers

Showa Shell Sekiyu K.K led the decliners in the Nikkei 225 Stock Average with a loss of 9.8% followed by losses in Shinsei Bank, Limited of 4.7%, in Taiyo Yuden Co., Ltd of 4.1%, in Credit Saison Co., Ltd 3.9% and in Isuzu Motors Ltd 3.5%.

Nippon Light Metal Company, Ltd led gainers in the Nikkei 225 Stock Average with a rise of 5.6% followed by gains in Clarion Co Ltd 4.6%, in Marui Group Co Ltd of 4.4% and in Sumitomo Osaka Cement Co., Ltd 3.4%.

Other Movers

Foster Electric Company, Limited the speaker maker added 3.5% to ¥2,345.00.

Kurabo Industries Ltd added 6.8% to ¥156.00 after the maker of yarns and woven fabrics rose on higher than expected net income estimate.

Kyoei Sangyo Co the electronic equipment and components maker surged 10.4% to ¥180.00.

Mitsui & Co. dropped 2.9% to ¥1,360 and Mitsubishi Corp dropped 1.9% to ¥2,220.

Tokyo Electron dropped 2.9% to ¥5,660 and NEC Electronics Corp declined 2.3% to 879 yen.

Toyota Motor Corp declined 1.5% to ¥3,275 and the company said to the U.S. lawmakers that it does not know what causes unintended acceleration in 70% of the reported incidences. Toyota has recalled more than eight million vehicles worldwide and halted sales of eight models.

Sankyu Inc rose 3.3% to ¥430.00 after the logistics company was upgraded to “outperform” from “neutral” at Mizuho Securities Co.

Ship Healthcare Holdings Inc surged 6.9% to ¥50,800.00 after the medical equipment distributor was upgraded to “buy” from “underperform” at Merrill Lynch & Co.