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Market Update

Earnings Optimism Lifts Nikkei, September Trade Deficit of $9.5 Billion

Author: Hiruki Nakamura
Last Update: 11:42 AM ET October 21 2013

4:30 PM Tokyo Market indexes traded higher and the yen weakened for the second day in a row. Exports rose less than expected 11.5% and imports soared 16.5% resulting in trade deficit of $9.5 billion in September. Furukawa battery soared 10% on higher net income outlook.

Market indexes in Tokyo jumped and the yen declined after investors focused on domestic earnings.

The weaker yen is expected to benefit exporting companies in electronics, auto and banking sector.

The latest international trade data suggested a sharp decline in exports in September. Exports increased 11.5% in September from a year ago from the revised 14.6% increase in August, ministry of finance said.

Imports soared 16.5% in the month, resulting trade deficit of 932.1 billion yen or $9.5 billion.

Japan reported a record trade deficit of 4,989.2 billion yen or $50 billion for the first half ending in September and strong energy demand continued to push up fossil fuel import costs.

The Nikkei 225 Stock Average gained 132.03 or 0.9% to 14,693.57 and the Topix gained 6.84 to 1,212.36.

The yen dropped and closed at 98.11 against one dollar.

Stocks in Review

Toyota Motor Corp rose 20 yen to 6,300 yen and Honda Motor Co. added 10 yen to 3,950 yen. Nissan Motor Co Ltd slipped 12 yen to 1,015 yen.

Sony fell 9 yen to 1,921 yen.

Softbank Corp climbed 200 yen to 7,480 yen agreed to pay $1.26 billion for a 57% stake in privately held cell phone distributor U.S. based Brightstar Corporation.

Fast Retailing Co. jumped 350 yen to 34,200 yen.

Canon Inc gained 1.4% to 3,185 yen after the Japan based camera maker is expected to benefit from the weaker yen.

Jafco Co., Ltd increased 2% to 5,120 yen after the investment company reported net revenues in first-half ending in Sept soared 185% to 15.74 billion yen from 5.51 billion yen a year ago period. Net income surged six-fold to 5.50 billion yen from a year ago period.

Suzuki Motor Corporation climbed 2.4% to 2,470 yen after the Nikkei newspaper reported the automaker is likely to post its operating profit for the April-September period of nearly 90 billion yen, 30% increase from a year ago.

The Furukawa Battery Co., Ltd surged 10.3% to 577 yen after the battery maker said net profit for the first-half doubled to 410 million yen from estimated of 200 million yen.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc