Stocks and the benchmark index in Tokyo trading surged on the continued weakness in the yen against the dollar. Consumer prices excluding food declined for the third month in a row.
Japan’s benchmark stock index rose the most in 18 months as the yen weakened to as low 92.96 against the dollar. The Nikkei 225 Stock Average rose to as high as 11,000, the highest intraday high since October 3, 2008.
In Tokyo trading index gained 1.6% or 167.52 to 10,996.33, and the broader Topix Index jumped 1.5% to 966.72. for the quarter Nikkei is up 4.3% and for the month index has gained so far 8.6%.
In the first section of the Tokyo Stock Exchange 8.9 billion shares valued at 587 billion yen were traded and in the second section 201 million shares worth 3 billion yen changed hands.
Of the Nikkei 225 index stocks, 206 gained, 10 fell, and 9 were unchanged. Pioneer Corp. led gainers in the index shares with a rise of 9.6% followed by Alps Electric Co. advancing 6.2%.
Ten-year Japanese bonds yields rose to 1.375% after the U.S. 10-year bond yields increased to 3.91% on a weak $32 billion bond auction.
Consumer Prices Fall 0.1% in Feb
Japan’s Statistics Bureau reported today that the country’s consumer price index fell 0.1% to 99.3 in February, and decreased 1.1% from a year ago.
The index excluding food prices declined 1.2% from a year ago month, third monthly decline after dropping 1.3% in each of the previous two months.
Of the 524 goods prices tracked by index, the prices declined for 335 items, less than 342 goods in January as reported by the Statistics bureau.
Food prices fell 0.4% from a month earlier and declined 1.4% from a year ago, housing was unchanged in the month but fell 0.2% from a year earlier, while fuel, light and water charges jumped 0.8% from January and tumbled 5% from the comparable year ago period.
Services were unchanged for the month and declined 0.4% from last year.
The statistics bureau also said the consumer price index for the Ku-area of Tokyo, which is a harbinger of general prices in Japan, advanced 0.3% to 98.9 in March and tumbled 1.8% from a year ago.
Food prices were unchanged and decreased 1.9% from a year ago, while housing fell 0.1% on the month and 0.6% on the year.
ANA Demands JAL to Disclose Use of Public Funds
Japan Today reported yesterday that All Nippon Airways President Shinichiro Ito has called for the disclosure of information on how its rival Japan Airlines Corp. will use public funds it has received to turn itself around.
Ito said the use of the funds to upgrade its aging fleet and lower fares will undermine fair competition in the industry.
JAL said last week it will use the public funds to shift to smaller-sized, fuel efficient aircraft.
“The public funds should first be used to maintain aviation networks that are necessary for public transportation and to reduce debt,” said Ito.
