4:30 PM Tokyo Ė Nikkei average extended gains for the third day in a row and foreign investors remained net seller last week. Trade deficit narrowed in August from a year ago month on the plunging oil price and steady growth in exports to the U.S.
Nikkei average increased for the third day in a row and closed at a one-week high ahead of the U.S. rate decision later today.
However, foreign investors took the opportunity to lower exposure to Japanese stocks.
Foreign investors sold net 1.4 trillion yen worth of stocks last week, according to the data available from the ministry of finance.
The merchandise trade deficit in August widened to 569.66 billion yen or $4.7 billion compared to 268.4 billion yen deficit in July, the Ministry of Finance said.
Trade deficit narrowed in the month from a year ago by 4.2%.
For the year, exports dropped 3.1% to 5.9 trillion yen or $48.7 billion from the 7.6% increase in July and import slumped 3.1% to 6.5 trillion yen or $53.4 billion compared to 3.2% jump in the previous month.
The Nikkei 225 Stock Average jumped 260.67 or 1.4% to 18,432.27 and the broader Topix index increased 19.31 to 1,491.91.
The yen strengthened to 120.85 against a dollar.
Stocks in Review
gained 1.4% to 3,240 yen after the sports products maker lifted net sales forecast for the year ending in December to 1.4% increase to 429 billion yen from the earlier estimate of 423 billion yen.
The company estimated net income for the year to decline to 13 billion yen compared to previous forecast of 21 billion yen.
Hiday Hidaka Corporation
jumped 3.1% to 3,035 yen after the Nikkei news stated restaurant chain operatorís sales to increase 6% to 18 billion yen and operating profit to gain 6% to 2.3 billion yen and comparable restaurant sales to increase 2%.
Nomura Research Institute Ltd
increased 1.2% to 4,880 yen after the Nikkei daily said consulting services providerís sales for the first-half ending in September to soar 9% to 215 billion yen and operating profit of about 28.5 billion yen.
For the year, sales are estimated to jump 5% to 425 billion yen and operating profit to surge 13% to 58 billion yen.
soared 4.4% to 4,190 yen after the electric and electronic equipment maker plans to acquire the U.S.-based robot maker Adept Technology, Inc for $13 a share or about $200 million in cash.
The transaction is expected to close on or about October 22.