Tokyo stocks close up 0.40 percent

TOKYO: Tokyo stocks closed 0.40 percent higher on Thursday, led by automakers, after Japan announced a surprise trade su
22 Mar, 2012

The Nikkei 225 index at the Tokyo Stock Exchange ended 40.59 points higher to 10,127.08. The Topix index of all first-section issues gained 0.38 percent, or 3.29 points, to 862.07.

Japan said it logged a trade surplus of 32.9 billion yen ($394 million) in February, defying economists' expectations of a deficit and after posting a record trade deficit in January.

However, dealers in the afternoon focused on HSBC's preliminary Purchasing Managers' Index for China, which showed manufacturing activity contracted further in March, fuelling fears over the world's number two economy.

China's manufacturing activity fell to a four-month low in March, the British banking giant said.

In Tokyo, automakers' shares rose as a recovery in car exports to the United States was largely responsible for the unexpected trade surplus, said Rakuten Securities senior market analyst Masayuki Doshida.

"Car sales in the United States look positive against the backdrop of firm economic conditions," he said.

Toyota Motor was up 0.42 percent at 3,535 yen, Nissan Motor gained 1.50 percent to 878 yen and Honda Motor rose 1.70 percent at 3,275 yen.

Sony edged up 0.05 percent at 1,734 yen after announcing it was selling its chemical products division as part of a huge business overhaul.

NEC shares added 1.76 percent to 173 yen as the Japanese IT giant said it was buying an information management business from US-based Convergys for $449 million.

Copyright AFP (Agence France-Presse), 2012

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