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Market Update

Trade Deficit in Japan Plunges, Toyota Shareholders Approve $4 B Offering

Author: Hiruki Nakamura
Last Update: 12:00 PM ET June 17 2015

4:30 PM Tokyo – Nikkei average in Tokyo increased and the yen held firm ahead of the U.S. Fed’s rate decision. Trade deficit in May plunged 76% after imports in the month declined 8.7% and exports rose 2.4%. Toyota shareholders approve its plan to raise $4 billion in a new class of stock offering.

Nikkei average in Tokyo increased and the yen held firm in active trading ahead of the U.S. Fed’ rate decision later in the day.

The trade deficit in May declined 76.5% to 215.97 billion yen from 917.22 billion yen in a year ago month, the Ministry of Finance said today.

Exports in the month jumped 2.4% to 5.74 trillion yen compared to 5.61 trillion yen a year ago month.

Import in May plunged 8.7% to 5.96 trillion yen from 6.52 trillion yen in May 2014.

The Nikkei 225 Stock Average slipped 38.67 or 0.2% to 20,219.27 and the broader Topix index fell 6.16 to 1,633.70.

The yen closed at 123.59 against a dollar.

Stocks in Review

Japan Post Holdings Co., Ltd, is expected to file with the Tokyo Stock Exchange as early as late June for approval of simultaneous listing in October of its insurance and banking services units.

Ryohin Keikaku Co Ltd surged 6.7% to 22,300 yen after the retailer signed an agreement with India-based Reliance Brands Limited to form a joint venture to launch MUJI retail outlets in India.

Toyota Motor Corp slipped 1% to 8,311 yen after the auto maker won a shareholder approval to issue shares of up to $4 billion to long term shareholders.

The shares must be held for five years and shareholders can covert to common shares or sell it back to Toyota at the issue price. The shares will be unlisted and will be sold only in Japan.

At the annual shareholder meeting, the proposal passed on Tuesday with about 75% of shareholders voting in favor.

50 million model AA shares, named after Toyota’s first passenger car, similar to convertible bonds, are planned to be issued in the first series and sell additional 100 million shares in subsequent offerings.

Separately, the board of directors approved to repurchase as much as 40 million shares at a maximum total purchase price of 300 billion yen.

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