5:00AM New York, 7:00 PM Tokyo- Japan’s foreign exchange reserves rose $22.68 billion $996.04 billion in January.

Stocks rose in Japan after the country’s foreign exchange reserve assets climbed for the seventh straight month to a record level on the rising trade surplus. The Bank of Japan holds less than 3% of its assets in gold.

The Bank of Japan’s Deputy Governor’s view Kazumasa Iwata that consumer spending remains stronger than consumer confidence also helped positively influence investor sentiment.

Market sentiment

In Tokyo trading Nikkei 225 index shares rose 0.82% or 107.91 to 13,207.15 and the broader Topix Index jumped 0.5% or 6.67 to 1,305.08.

In the first section of the Tokyo Stock Exchange 10.8 billion shares worth 1.2 trillion yen changed hands and in the second section 256 shares valued at 3.39 billion yen were traded.

Of the Nikkei 225 stocks 120 rose, 94 declined, and 11 were unchanged.

Nichirei Corp led advancers with a rise of 7.63% followed by gains in Konami Corp. of 7.28%.

Foreign Reserve Rises

The Ministry of Finance reported today that the country’s foreign reserve assets climbed by $22.68 billion at the end of December to $996.04 billion in January.

Of the reserve assets, $844.4 billion are in securities while $124 billion in deposits. The IMF reserve position holds $1.4 billion, $3 billion are in SDRs, gold accounts for $22.7 billion, and other reserve assets are at $376 million.

Discomfort over BHP, Rio Deal

Kyodo news reported yesterday that secretary general of Japan’s Fair Trade Commission Shoji Ito said the country will discuss with other countries, including Australia and Britain, on whether the takeover bid of Rio Tinto by BHP Billiton presents antitrust complications.

Japan Iron and Steel Federation has already registered its reservations on the deal as the merger of the two mining companies will lead to the country relying on one company for 60% of its iron ore products.

Consumer spending

Bloomberg news reported that Deputy Governor of the Bank of Japan Kazumasa Iwata said today in a speech in western Japan that consumer spending remains firmer than consumer confidence.

Separately, the online edition reported that the Bank of Japan Governor Toshihiko Fukui told parliament today that rising oil prices were posing significant inflationary pressures on the economy at the same time dampening growth.

Property acquisitions drops

The Nikkei online edition reported today that the obtaining tight credit conditions and soaring prices of properties slowed property purchases by real estate investment trust by 32% in value last year.

The yen climbed 0.27% from 106.55 to 106.54.