Nikkei Soars 1.2%, Honda Motor Net Surges 46%

Hiruki Nakamura
30 Oct, 2013
New York City

Stocks in Tokyo advanced and Nikkei index added 1.2% and the yen weakened. Honda Motor said quarterly net soared 46% to $1.2 billion and retained its full-year outlook. Japan Tobacco plans to close four factories and cut 1,600 staff.

[R]4:30 PM Tokyo – Stocks in Tokyo advanced and Nikkei index added 1.2% and the yen weakened. Honda Motor said quarterly net soared 46% to $1.2 billion and retained its full-year outlook. Japan Tobacco plans to close four factories and cut 1,600 staff.[/R]

Investors in Tokyo bid up stocks as companies release earnings and expect weakening yen will add more profits to exporting companies.

The Nikkei 225 Stock Average increased 176.37 or 1.2% to 14,502.35 and the Topix gained 11 or 0.9% to 1,204.50.

The yen eased to 98.16 against one dollar.

Stocks in Review

Toyota Motor Corp jumped 100 yen to 6,370 yen.

Honda Motor Co. gained 50 yen to 3,965 yen after the automobile company reported net sales in the second-quarter ending in September climbed 27.3% to 2.89 trillion yen from 2.27 trillion yen a year ago.

Net income in the quarter surged 46% to 120.3 billion yen compared to 82.2 billion yen. The company retained its full-year estimate at 580 billion yen.

Consolidated operating income for the quarter soared 70% to 71.4 billion yen compared to same period of last year.

Honda forecasted net sales and other operating revenue and consolidated operating income and consolidated net income for the current fiscal year ending March will remain unchanged.

The company also lowered its motorcycle sales in Asia outside of Japan to 8.13 million units from 8.35 million units.

In a separate press replace, the automobile added it will sell its entire stake in its electronics subsidiary Honda elesys Co., Ltd. to Nidec Corporation.

The company said it will terminate its wholly owned unit Honda Soltec Co, the maker of solar technology based products.

Shares of Nidec Corp in Tokyo exchange slid 0.7% to 9,100 yen and closed unchanged at $23.46 at New York stock exchange.

In separate news, Honda said it begins to construct the first wind farm that needed for its annual local automobile production in Brazil.

Nissan Motor Co Ltd decreased 8 yen to 1,001 yen.

Sony slipped 18 yen to 1,892 yen.

Softbank Corp dropped 110 yen to 7,370 yen and Fast Retailing Co. fell 200 yen to 33,000 yen.

Japan Tobacco Inc climbed 3.6% to 3,550 yen after the tobacco products maker plans to close its four factories and cut 1,600 jobs to boost domestic competitiveness and profitability.

Nippon Steel & Sumitomo Metal Corp dropped 2.6% to 331 yen after the steel producer reported net revenue in the first-half ending in September climbed 39.4% to 2.68 trillion yen from 2.472 trillion yen a year ago period.

Net for the period swung to a profit 115.5 billion yen compared to a net loss of 310.4 billion a year earlier.

The company estimated it will swing to a net profit of 200 billion yen or $2 billion for the fiscal year ending March.