Nikkei Advances 1.3%; Citizen, Marubeni, Yokogawa in Focus

Hiruki Nakamura
11 Nov, 2013
New York City

Nikkei in Tokyo surged 1.3% following a 1% decline in yen. Yokogawa Electric Corp added 6% after the chipmaker lifted its income outlook. Marubeni Corp lowered its earnings outlook. Citizens Holdings soared 7% after the watchmaker lifted annual income estimate.

[R]4:30 PM Tokyo – Nikkei in Tokyo surged 1.3% following a 1% decline in yen. Yokogawa Electric Corp added 6% after the chipmaker lifted its income outlook. Marubeni Corp lowered its earnings outlook. Citizens Holdings soared 7% after the watchmaker lifted annual income estimate.[/R]

Investors turned optimistic after the yen declined as the U.S. economy added more than expected 204,000 employees last month.

The better than expected U.S. jobs report pushed back the worries of Fed taper at least for this year and investors bid up stocks.

In addition, higher dividend and interest receipts also lifted current account surplus in September.

The Ministry of Finance of Japan said current account surplus increased 14.3% to 587.3 billion yen in September compared to 161.5 billion yen in August.

The trade deficit declined to 874.8 billion yen in September from a deficit of 885.9 billion yen in August.

The Nikkei 225 Stock Average jumped 183.04 or 1.3% to 14,269.84 and the Topix gained 9.23 to 1,185.65.

The yen eased to 98.98 against one dollar.

Stocks in Review

Citizens Holdings Co. soared 7% to 722 yen after the watch maker lifted its annual net income estimate to 13 billion yen.

Furukawa Electric dropped 7% to 226 yen after the company reported 11% decline in net income to 2.3 billion yen and held its annual net income outlook at 5 billion yen.

Toyota Motor Corp gained 50 yen to 6,250 yen, Honda Motor Co. increased 65 yen to 3,935 yen and Nissan Motor Co Ltd jumped 14 yen to 897 yen.

Sony fell 8 yen to 1,641 yen and in a regulatory filing activist hedge fund investor Daniel Loeb of Third Point said he personally holds 1.64% interest in the company as of the end of September.

Softbank Corp rose 140 yen to 7,420 yen and Fast Retailing Co. climbed 200 yen to 30,800 yen.

Marubeni Corporation declined 4.1% to 716 yen after the Japan-based trading company reported revenues in the first-half ending in September soared 24.7% to 6.38 trillion yen from 5.12 trillion yen a year ago.

Net income in the period climbed 22.7% to 111.8 billion yen from 91.1 billion yen and diluted earnings per share jumped to 64.40 yen from 52.50 yen a year earlier.

Marubeni lowered its profit outlook.

J Trust Co., Limited plunged 24.8% to 1,210 yen after the Japan-based consumer lender revised its outlook for the year ending in March 2014 and operating revenue is estimated to jump 8.7% to 28.85 billion yen from 24.46 billion yen a year ago.

Net income in the first-half declined 85% to 1.1 billion yen compared to profit of 7.44 billion yen a year ago.

Nexon Co., Limited tumbled 21.5% to 877 yen after the Japan-based online games provider reported revenue in the third-quarter ending in September soared 64% to 39.88 billion yen from 24.56 billion yen a year ago.

Net income for the quarter surged 53% to 8.05 billion yen compared to 7.35 billion yen and earnings per share jumped 8% to 18.35 yen from 16.94 yen a year ago.

The company added revenue in the quarter from China region climbed 40% and from Korea surged 85%. Domestic revenue soared 171% but revenue from North America rose only 2% and from Europe and others grew 3%.

The company lifted its revenue guidance for the forth-quarter between 31.78 billion yen and 33.61 billion yen from 30.88 billion yen and earnings per share in the range of 10.96 yen to 13.05 yen from 1.27 yen a year ago.

Yokogawa Electric Corporation soared 6.4% to 1,328 yen after the measurement and control equipment maker said net sales in the second-quarter ending in September jumped 9.1% to 179.6 billion yen from 164.6 billion yen a year ago.

Net income for the declined 16.6% to 6.49 billion yen compared to 7.78 billion yen and earnings per share dropped to 25.19 yen from 30.20 yen a year earlier.

For the year, the chipmaker lifted its net-income outlook.