5:00AM New York, 7:00PM Tokyo - Japan core consumer prices advance 1.2% in March. NTT DoCoMo, Honda and Nomura reported declining earnings.

Stocks in Japan rose on a falling yen that helped boost exporters and on renewed investor confidence in financial stocks.

Market sentiment

In Tokyo trading Nikkei 225 rose 2.38% or 322.6 at 13,863.47, and the broader Topix Index increased 2.5% or 32.34 at 1,339.91.

In the first section of the Tokyo Stock Exchange 18 billion shares worth 2.4 trillion yen and in the second section 570 million shares valued at 1.1 billion yen changed hands.

Of the Nikkei 225 stocks 195 gained, 26 declined, and 4 were unchanged. Sumitomo Trust & Banking led advancers in the index shares with a rise of 7.81% on renewed confidence in financial stocks.

Japan’s core consumer prices rise 1.2% in March

The Statistics Bureau reported today that the core consumer price index for Japan rose 0.5% for the month and 1.2% for the year at 101 in March.

Food prices increased 0.7% for the month and 1.6% for the year, housing was unchanged for the month and rose 0.1% from the previous year, while fuel, light and water charges gained 0.1% in the month and 4.2% in the year.

Also clothes and footwear prices increased 4.1% for the month and rose 0.4% for the year. Transport and Communication increased 0.4% in the month, and gained 3.5% in the year, and education was unchanged for the month but rose 0.7% in the year.

According to the Statistics Bureau, consumer price index for Ku-area of Tokyo in April 2008 was up 0.3% from the previous month and up 0.6% over the previous year at 100.8.

Food prices rose 0.7% for the month and 1.6 for the year, while housing prices surged 0.1% and 0.2% for the month and the year respectively.

Fuel, light and water charges gained 1.9% for the previous month and 3.7% from March and furniture and household prices gained 0.2% in the month and slumped 1.5% in the year.

TCI rejects Japan’s recommendation

The Nikkei news reported today that the Children''s Investment Fund, a British hedge fund, today rejected the Japanese government''s recommendation that it retract its plan to acquire a larger stake in Electric Power Development Co.

Gainers & Losers

Sumitomo Trust & Banking led advancers in the Nikkei 225 index shares with a rise of 7.81% followed by increases in Aeon Co. Ltd of 7.45%, in Mizuho Financial Group of 7.33%, in T&D Holdings of 7.30%, and Shinsei Bank of 7.26%.

Financial stocks increased after investor confidence in financial stocks rose.

Exporters also gained as the yen dropped to 144.22 against the dollar. Canon Inc. gained 4.45%, Casio increased 2.99%, and Komatsu Ltd advanced 3.25%.

Kawasaki Kisen led decliners in the Nikkei 225 index shares with a drop of 4.59% followed by losses in Inpex Holdings of 4.03%, in Comsys Holdings of 3.07%, NGK Insulators of 2.72%, and Itochu Corp. of 2.40%.