Retailers Lead Japan Stocks Advance, ANA Places Largest Order

Hiruki Nakamura
27 Mar, 2014
New York City

Market indexes in Japan advanced and the yen closed nearly unchanged. Toyota said it will buy back shares worth $3.5 billion, first in five years. Nissan Motor plans to recall one million vehicles. Seven & I is in talks to take control of stores at railway stations. ANA placed a largest plane order.

[R]4:30 PM Tokyo – Market indexes in Japan advanced and the yen closed nearly unchanged. Toyota said it will buy back shares worth $3.5 billion, first in five years. Nissan Motor plans to recall one million vehicles. Seven & I is in talks to take control of stores at railway stations.[/R]

Stocks in Tokyo advanced in the final hour of trading and retailers led the surge after a report suggested Seven & I will assume direct control of stations in partnership with West Japan Railway Co.

The Nikkei 225 Stock Average jumped 145.73 or 1% to 14,622.89 and the Topix index gained 4.83 to 1,176.90.

The yen closed at 102.18 against the U.S. dollar.

Stocks in Review

Toyota Motor Corp climbed 225 yen or 4.1% to 5,731 yen after the car-maker said it will buy back up to 1.89% of its issued shares worth 360 billion yen or $3.5 billion, a first buyback plan in five years.

The company will sell 30 million shares to Japan Trustee Services Bank for a token amount of 1 yen per share and remaining 30 million shares will be cancelled.

Honda Motor Co rose 12 yen to 3,533 yen.

Nissan Motor Co Ltd gained 1.1% to 894 yen after the automobile company plans to recall one million vehicles in North America due to a defect in the front passenger airbag.

Sony increased 22.50 yen to 1,881 yen.

Softbank Corp slumped 132 yen to 7,811 yen. Fast Retailing Co climbed 1,190 yen or 3.3% to 37,170 yen.

ANA Holdings Inc closed unchanged at 220 yen after the Japan-based airline company agreed to buy 40 aircraft from Boeing and 30 planes from Airbus and will split a 1.7 trillion yen or $16.6 billion order for new aircraft between Boeing Company and Airbus Group NV.

The order is the largest in the airlines history.

Seven & I Holdings Co., Ltd jumped 5.1% to 3,884 yen after a media report the retailer may take control of hundreds of shops in train stations in partnership with West Japan Railway Co.

Japan Airlines Co. to gained 4.9% as Citigroup said the carrier’s operating-profit target is for 140 billion yen.