Nikkei Leads World Markets in Quarterly Loss, Japan Output Falls

Hiruki Nakamura
31 Mar, 2014
New York City

Market indexes extended a weeklong rally and industrial output declined 2.3% in February. The latest output data was among a series of economic statistics highlighting weak economic activities in Japan. Japan is set to increase its first sales tax since 1997.

[R]4:30 PM Tokyo – Market indexes extended a weeklong rally and industrial output declined 2.3% in February. The latest output data was among a series of economic statistics highlighting weak economic activities in Japan. Japan is set to increase its first sales tax since 1997.[/R]

The Ministry of Economy, Trade and Industry said industrial output declined 2.3% in February following a 3.8% increase in January.

The data declared a day before the national sales tax jump is set to 8% from 5% from tomorrow.

The Nikkei 225 Stock Average gained 131.80 or 0.9% to 14,827.83 and the Topix index jumped 16.37 or 1.4% to 1,202.89, sixth increase in a row.

For the month, Nikkei 225 increased 1.2% and for the quarter tumbled 9%, the worst quarterly decline among major ten financial markets in the world.

The yen closed at 102.97 against the U.S. dollar.

Stocks in Review

Toyota Motor Corp rose 41 yen to 5,826 yen. Honda Motor Co jumped 80 yen to 3,634 yen. Nissan Motor Co Ltd climbed 2.2% to 920 yen.

Sony jumped 75 yen or 3.9% to 1,972 yen.

Softbank Corp increased 106 yen to 7,800 yen. Fast Retailing Co dropped 450 yen or 1.2% to 37,435 yen.

Japan Process Development Co., Ltd slid 0.7% to 913 yen after the information technology provider reported net sales in the first-quarter ending in March increased 3.5% to 3.78 billion yen from 3.66 billion yen a year ago.

Net income in the quarter surged 33.2% to 152 million yen compared to 114 million yen and earnings per share jumped to 27.51 yen from 20.65 yen a year earlier.

Mitsubishi Motors Corporation gained 2.2% to 1,080 yen after the Nikkei reported automobile company will buy a factory in the Philippines from Ford Motor Co. for about 10 billion yen to 15 billion yen or $97 million to $145 million.

Techno Alpha Co., Ltd climbed 3.1% to 1,240 yen after the marine and environment equipment trader said net sales in the first-quarter ending in February more than doubled to 950 million yen from 454 million yen a year earlier.

Net in the quarter swung to a profit 87 million yen compared to a loss of 2 million yen and earnings per share climbed to 43.29 yen from a loss of 1.15 yen a year ago period.