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Market Update

Japan Exports Rise in July, Trade Deficit Widens

Author: Hiruki Nakamura
Last Update: 11:13 AM ET August 20 2014

4:30 PM Tokyo Stocks in Japan closed higher and the Topix declined for the first time in seven days. Trade deficit in July widened but exports rose for the first time in the month on the higher shipments to Asia, Europe and the U.S.

Stocks in Japan advanced for the fifth day and Topix declined for the first time after seven days after exports rose for the first time in three months in July.

The Ministry of Finance said trade deficit in July jumped to 964 billion yen (or $9.4 billion) from 823.2 billion yen dropped in June.

Exports in the month jumped 3.9% following the 1.9% decrease in the previous month. Imports in July increased 2.3% compared to 8.4% surge a month earlier.

Exports improved after shipments to the U.S. rose 2.1%, to Europe surged 10% and to Asia soared 3.4%.

Despite the weak consumption, imports are still rising.

The economy is forecasted to expand 2.9% in the current quarter ending in September after contracting 6.8% in the June quarter.

The Nikkei 225 Stock Average rose 4.66 to 15,454.45 and the broader Topix index slid 0.65 to 1,279.64.

The yen closed at 103.15 against one U.S. dollar.

Stocks in Review

Hitachi Metals, Ltd climbed 3.2% to 1,790 yen after the rare earths magnets maker proposed to acquire the U.S.-based Waupaca Foundry Inc from KPS Capital Partners LP for $1.3 billion in cash.

Japan Hotel REIT Investment Corp closed unchanged at 31,600 yen after the real estate developer reported revenue in the first-half ending in June climbed 15.1% to 5.50 billion yen from 4.78 billion yen a year ago period.

Net income in the period surged 56.4% to 2.23 billion yen compared to 1.43 billion yen and earnings per share jumped to 852 yen from 615 yen a year earlier.

The company agreed to acquire property from Mitsui Fudosan for 6 billion yen and buy one more property from a Japanese company valued at 3 billion yen on September 30.

Mitsubishi Corp edged up 0.07% to 2,173.50 yen after the trading company won a contract to build agricultural fertilizer plant in Turkmenistan with a Turkish construction company Turkmenhimiya at an estimated cost of $1.3 billion.

The complex will consist of an ammonia plant with production capacity of 2,000 ton per day and a urea plant with production capacity of 3,500 ton per day.

Tokyu Corp slipped 0.5% to 761 yen after the transportation service provider net sales in the first-half ending in June edged up 0.9% to 259.2 billion yen from 256.9 billion yen a year ago period.

Net income in the period declined 9% to 12.28 billion yen compared to 13.50 billion yen and diluted earnings per share dropped to 9.78 yen from 10.74 yen a year earlier.

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