5:00AM New York, 7:00PM – Japan’s trade surplus in March declined 30.2% to 1.12 trillion yen. Oil nears $120 per barrel

Stocks in Japan advanced spurred by rising crude oil prices on growing demand from China and supply constraints from Iraq and Nigeria.

Market sentiment

In Tokyo trading Nikkei 225 rose 0.23% or 31.34 to 13,579.16, and the broader Topix Index increased 0.2% or 2.93 at 1,314.39.

In the first section of the Tokyo Stock Exchange 8.4 billion shares worth 972 billion yen were traded and in the second section 226 million shares valued at 5 billion yen changed hands.

Of the Nikkei 225 stocks 126 gained, 90 declined, and 9 were unchanged. Clarion Co. Ltd led advancers in the index shares with a rise of 11.56% followed by Chugai Pharmaceutical Co gaining 8.85%.

Japan’s exports rise 2.3% in March

Japan’s Finance Ministry reported today that exports grew 2.3% in March from the same period a year ago compared with 8.7% recorded in February compared to expectations of a decline of 6%. Imports in March surged 11.1% from a year earlier on rising material costs and oil prices.

March trade surplus declined 30.2% to 1.12 trillion yen.

Exports to U.S. fell for the seventh consecutive month by 11%, while shipments to China and the European Union advanced 3.2% and 3.6% respectively. In addition, exports to Asia jumped 1.9% at 3.7 trillion yen.

Japan''s exports rose in March at the slowest pace in almost three years as shipments to Asia lost momentum and the U.S. slowdown deepened.

However, the finance ministry also said that Japan’s customs-cleared trade surplus for fiscal 2007 rose 13.4% from 2006 to 10.2 trillion yen on strong exports of steel and cars to emerging markets, as exports gained 9.9% to 85 trillion yen. Imports in fiscal 2007 also jumped 9.4% to 74 trillion yen.

Trade surplus with the U.S. tumbled 9% to 8.2 trillion yen for the first time in four years as exports declined 3.1% to 16 trillion yen as subprime losses took their toll on the economy.

Japan’s crude oil imports increase 3.2% in March

Separately, the Ministry of Finance also reported that crude oil imports gained 3.2% in March to 22.3 million kiloliters, or 4.5 million barrels a day, increasing the imports by 51.6% to 1.39 trillion yen.

In the month under review liquefied natural gas imports grew 19.4% to 6.32 million metric tons, while coal imports fell 10.6% to 15 million tons.

Also in the fiscal year ended March 31, crude imports declined 0.2% to 243 million kiloliters, but LNG imports advanced 7.9% to 68.3 million tons.

Gainers & Losers

Clarion Co. Ltd led advancers in the Nikkei 225 index shares with a rise of 11.56% followed by rises in Chugai Pharmaceutical Co. of 8.85%, in Nippon Soda Co. of 8.60%, in Nippon Oil Corp of 7.39%, and Nippon Mining House of 5.48%.

Commodity stocks gained after crude oil prices neared $120 per barrel on supply constraints and rising demand from China. Inpex spiked 4.10% and Mitsui & Co edged up 4.88%.

Toho Co Ltd led decliners in the Nikkei 225 index shares with a drop of 5.17% followed by losses in Kao Corp of 3.80%, in Taiheiyo Cement of 3.61%, in Nomura Holdings of 3.07%, and Osaka Gas Co. Ltd of 2.97%.