5:00AM New York, 7:00PM Tokyo – Service sector grows 1.8% in April.

Stocks in Japan edge lower as investors took profit and crude oil price in the region declined.

Market sentiment

In Tokyo trading Nikkei 225 fell 0.04% or 6 to 14,348.37, and the broader Topix Index rose 0.02% or 0.29 at 1,401.98.

In the first section of the Tokyo Stock Exchange 9 billion shares valued at 967 billion yen were traded and in the second section 192 million shares valued at 4 billion yen changed hands.

Of the Nikkei 225 stocks 109 gained, 106 declined, and 10 were unchanged. Tokyo Dome Corp. led advancers in the index shares with a rise of 15.13% followed by Denki Kagaku increasing 6.88% after JP Morgan Chase & Co upgraded the stock to “overweight”.

Service sector grows by 1.8% in April

The Ministry of Industry Trade and Economy said that the Indices of Tertiary Industrial Activity rose 1.8% in April to a seasonally adjusted 110.4.

Industries that contributed to the increase were information and communications rising 9.6% followed by increases in wholesale and retail trade of 1.5%, in electricity, gas, heat supply and water of 2% and in transport and real estate gains of 0.9% in each sector.

Services and medical, health care and welfare rose 0.3% and 0.4% respectively.

Industries that contributed to the slump were compound services falling 5.6% followed by declines in eating and drinking places of 0.9%, in learning support of 4.3% and finance and insurance of 0.1%.

Ministry of Finance mulls lottery bonds

Ministry of finance is considering introducing lottery bonds that offer chances to win prices to shore up sluggish sales of government bonds for individuals according to news report on the Nikkei News.

Lehman Brothers lowers exposure to leveraged loans

Lehman Brothers chief executive Dick Fuld said yesterday the lender has sold more assets that it estimated and lowered its exposure to leveraged loans. Lehman sold a total of $147 billion in asset and lowered its leveraged loans to $18 billion.

Gainers & Losers

Tokyo Dome Corp. led advancers in the Nikkei 225 index shares with a rise of 15.13% followed by rises in Denki Kagaku Kogyo KK of 6.88%, in Chiyoda Corp. of 4.96%, in Kajima Corp. of 4.91%, and Pioneer Corp. of 4.78%.

Tokyo Dome increased after declining oil prices eased inflation worries.

Denki Kagaku KK rose as JP Morgan Chase & Co. upgraded the stock to “overweight”.

Power utilities also gained as crude oil for July delivery fell to $133.50 a barrel from yesterday''s record of $139.89 as Saudi Arabia said it will increase production.