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Market Update

Nikkei Rises 1% Despite Weak Imports Data, BoJ on Hold

Author: Hiruki Nakamura
Last Update: 9:25 AM ET November 19 2015

4:30 PM Tokyo – Nikkei in Tokyo jumped more than 1% and the Bank of Japan left its monetary stimulus program intact. Exports in October declined 2% and imports tumbled 13%, prompting a caution that the domestic economy may not be strong enough.

Stocks in Tokyo traded higher following an Asia-wide rally and the Bank of Japan left its rate and stimulus program on hold.

The widely expected rate decision by the market was overshadowed by the expected rate increase in the U.S. after more Fed officials supported the rate-hike scenario at the next policy meeting in December.

The Bank of Japan left its monetary stimulus unchanged after the governor Haruhiko Kuroda said the capital expenditures was slightly weaker than estimated.

The central bank kept its unprecedented easing program unchanged to an annual pace of 80 trillion yen.

However, the bank said although “some indicators are relatively weak” but “inflation expectations appear to be rising.”

On the economic front, trade balance in October swung to 111.47 billion yen from the deficit of 741.76 billion yen in a year ago period, the Ministry of Finance reported today.

The ministry said Export in the month declined 2.1% to 6.54 trillion yen from 6.69 trillion yen in a year ago month.

Import in October tumbled 13.4% to 6.43 trillion yen compared to 7.43 trillion yen in the same month a year ago.

The Nikkei 225 Stock Average jumped 210.63 or 1.1% to 19,859.81 and the broader Topix index increased 13.85 to 1,600.38.

The yen weakened to 123.14 against a dollar.

Stocks in Review

Kumiai Chemical Industry Co., Ltd gained 0.9% to 1,042 yen after the chemical products maker’s net sales for the year ending in October are expected to jump 8% to 60 billion yen and operating profit to surge 33% to 3.4 billion yen.

Kenedix Inc rose 0.2% to 504 yen after the investment service provider plans to repurchase up to 4.40 million shares worth about 2 billion yen through December 18.

As of today the company has completed the repurchase of 4.02 million shares for 2 billion yen since November 11.

Mitsubishi Electric Corporation increased 1.3% to 1,335.50 yen after the electrical and electronic equipment maker plans to increase its sales in North America for about 100 billion yen in the next five-years.

Pigeon Corporation jumped 3.3% to 3,405 yen after the Nikkei daily said the baby product maker’s sales for the nine-month period ending in October is expected to increase 12% to 68.5 billion yen and operating profit is expected to soar 18% 11.5 billion yen.

For the year, sales to advance 14% to 95.5 billion yen and operating profit jumped 17% to 15 billion yen.

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