4:30 PM Tokyo – In quiet trading, Nikkei average in Tokyo edged lower for the second day after the economy expanded at a faster-than-expected pace in the first quarter. NTT Data agreed to acquire consulting group in the U.S. for $212 million. Dentsu said May revenues soared across all advertising channels.
Market indexes in Japan sold off after the latest revision showed economy expanded at a faster pace than previously estimated.
The faster-than-expected economic growth combined with the trade and current account surplus data lowered the expectations of another monetary stimulus from the central bank.
The current account surplus in April declined to 1.33 trillion yen from 2.80 trillion yen March. In April 2014, current account surplus was 220.8 billion yen, the Ministry of Finance said today.
Trade deficit in April was 146.2 billion yen compared to surplus of 671.4 billion yen in March and deficit of 789.6 billion in the same month a year ago.
Exports in the month jumped 4.1% to 6.23 trillion from a year ago month but declined 9.8% from a month ago.
Imports plunged 5.9% to 6.37 trillion after tumbling 15.8% in March.
Separately, the department said foreign reserves in May declined to $1.246 trillion compared to $1.250 trillion in April and as of May 31 the reserves were at $1.284 trillion.
Gross domestic product in first-quarter climbed to 3.9% annual rate from the preliminary reading of a 2.4% annual rate increase and 1.2% reported for the fourth-quarter, the Cabinet Office said.
On a seasonally adjusted, GDP was revised to 1% growth from the preliminary reading of 0.6% and 0.3% increase in the fourth-quarter.
The Nikkei 225 Stock Average slid 3.71 to 20,457.19 and the broader Topix index fell 5.07 to 1,661.99.
The yen closed at 125.23 against a dollar.
Stocks in Review
dropped 3.7% to 5,950 yen after the advertising and marketing services provider said sales in May soared 97.3% to 111.3 billion yen from a year ago month.
Revenues from television segment jumped 93.7% to 57.56 billion yen and net revenues in print advertising climbed 95.4% to 6.60 billion yen. Revenues in marketing business segment surged 116.6% to 13.30 billion yen.
Nippon Paper Industries Co., Ltd
rose 0.1% to 2,214 yen after the Nikkei news reported group is targeting to double operating profit to 50 billion yen and total operating cash flow of about 300 billion yen in the next three years.
The company plans to spend 280 billion yen on capital investment.
Nippon Paper also plans to increase investment in chemical businesses and set aside about 30 billion yen for mergers and acquisitions.
NTT Data Corp
rose 0.2% to 5,510 yen after the information technology provider agreed to buy Carlisle & Gallagher Consulting Group for more than 20 billion yen or $212.5 million.
The transaction is expected to close in July.