Nikkei Extends Gains on U.S. Housing Data

Hiruki Nakamura
26 May, 2014
New York City

Investors in Japan reacted positively to the U.S. new home sales data released on Friday. The yen traded at a 2-year high and the Topix added 1.2% gained after rising 1.8% in the previous week. Sony enters in two joint ventures in China after the nation 13-year ban on game console sale.

[R]4:30 PM Tokyo – Investors in Japan reacted positively to the U.S. new home sales data released on Friday. The yen traded at a 2-year high and the Topix added 1.2% gained after rising 1.8% in the previous week. Sony enters in two joint ventures in China after the nation 13-year ban on game console sale.[/R]

Stocks in Tokyo traded higher following positive U.S. economic data and the yen traded near a 2-month high.

Investors took optimistic view of the latest new home sales data in U.S. and estimated improving economic conditions in the largest economy of the world.

Sony also formed two partnerships with China based Shanghai Oriental Pearl Co after the nation lifted its 13-year ban on the sale of game console.

The Nikkei 225 Stock Average gained 140.35 or 0.9% to 14,602.52 and the broader Topix index rose 14.25 to 1,194.69.

The yen increased to 101.91 against one U.S. dollar.

Stocks in Review

Toyota Motor Corp jumped 42 yen to 5,599 yen. Honda Motor Co climbed 63 yen to 3,565 yen. Nissan Motor Co Ltd increased 1% to 920 yen.

Sony soared 51 yen to 1,683 yen and the electronic products maker and the China-based Shanghai Oriental Pearl Group Co Ltd will set up two joint ventures to make and market Sony''s PlayStation games console in China.

China lifted its ban after 13-years on game console sales.

Softbank Corp jumped 148 yen to 7,118 yen. Fast Retailing Co Ltd surged 565 yen to 33,555 yen.

Conexio Corp gained 0.5% to 853 yen after the mobile phone service provider stated net sales in the year ending in March surged 39.7% to 292.36 billion yen from 209.30 billion yen a year ago.

Net income in the year climbed 29.4% to 4 billion yen compared to 3.09 billion yen and earnings per share jumped to 82.16 yen from 61.46 yen a year earlier.

Panasonic Corporation rose 0.3% to 1,080 yen after the audio and video equipment maker plans to exit the loss making electronic component business.

Toyo Ink SC Holdings Co Ltd climbed 2.8% to 443 yen after the offset-ink maker said net sales in the year ending in March soared 12.4% to 279.56 billion yen from 248.69 billion yen a year ago.

Net income in the year jumped 40.7% to 12.26 billion yen compared to 8.71 billion yen and earnings per share increased to 41.09 yen from 29.20 yen a year earlier.

Takara Holdings Inc rose 0.5% to 749 yen after the alcohol beverages maker reported net sales in the year ending in March jumped 4.3% to 209.57 billion yen from 200.99 billion yen a year ago.

Net income in the year surged 119.3% to 10.28 billion yen compared to 4.69 billion yen and diluted earnings per share climbed to 50.81 yen from 22.99 yen a year earlier.