Bank of Japan Lifts Views on Foreign Economies and Kept Historic Stimulus

Hiruki Nakamura
13 Jun, 2014
New York City

Bank of Japan kept its monthly stimulus plan and lifted its assessment of foreign economies. The central bank will continue to print money at historic pace of 60 trillion yen to 70 trillion yen. Meiji Holdings agreed to acquire India based generic drug maker for $290 million.

[R]4:30 PM Tokyo – Bank of Japan kept its monthly stimulus plan and lifted its assessment of foreign economies. The central bank will continue to print money at historic pace of 60 trillion yen to 70 trillion yen.[/R]

Stocks in Tokyo closed higher and for the week the Nikkei gained 0.1% and the yen retained upward bias and the Bank of Japan kept its monthly stimulus plan.

The central bank said it will continue printing money at a pace of 60 trillion yen to 70 trillion yen a year, in a statement today. Governor Haruhiko Kuroda and policy makers are striving to boost inflation above 2%.

The central bank also lifted its view of overseas economies and said in a statement overseas economies are “recovering” and noted uneven but moderate improvements in the domestic economy.

The Nikkei 225 Stock Average jumped 124.31 or 0.8% to 15,097.84 and the broader Topix index gained 6.22 to 1,243.97. For the week, Nikkei 225 rose 0.1%.

The yen dropped and close at 102.07 against one U.S. dollar.

Stocks in Review

Advantest Corporation climbed 3.5% to 1,253 yen after the nanotechnology chip maker targeted higher operating profit margin to 10% from 7% for the year ending March 2015.

Ateam Inc jumped 2.1% to 7,210 yen after the online mobile game and music provider reported revenue in the third-quarter ending in April climbed 17.4% to 3.31 billion yen from 2.82 billion yen a year ago period.

Net income in the quarter jumped 46.8% to 326 million yen compared to 222 million yen a year earlier.

Hitachi, Ltd gained 1.1% to 718 yen after the diversified manufacturer agreed to set up a venture with France-based Veolia Water Solutions & Technologies SA for global water infrastructure business.

Meiji Holdings Co Ltd rose 0.4% to 6,650 yen after the sweets, health foods and medicines maker agreed to acquire India-based generic drug maker Medreich Ltd. for $290 million.

Nippon Telephone Inc dropped 1.9% to 2,303 yen after the mobile communication services provider said net sales in the year ending in April jumped 23.9% to 7.6 billion yen from 6.17 billion yen a year ago.

Net income in the year surged 339.3% to 123 million yen compared to 28 million yen and earnings per share climbed to 36.32 yen from 8.24 yen a year earlier.

Shoei Foods Corporation closed unchanged at 812 yen after the food processing company reported net sales in the year ending in April soared 12.6% to 50.89 billion yen from 45.19 billion yen a year ago period.

Net income in the year plunged 34.3% to 1.10 billion yen compared to 1.68 billion yen and diluted earnings per share dropped to 56.81 yen from 86.45 yen a year earlier.

The company lifted its revenue forecast for the fiscal 2015 to 95 billion yen from 90 billion yen and estimated profit to fall to 15 billion yen from 18 billion yen.