Japan Investors Bid Up Stocks on the U.S. Recovery Prospects

Hiruki Nakamura
26 Jun, 2014
New York City

Stocks in Tokyo advanced and investors focused on the probable revival of economic growth in the second quarter in the U.S. Rakuten, the online retailer, jumped 3% on speculation that the company may launch a discount airline with Air Asia.

[R]4:30 PM Tokyo – Stocks in Tokyo advanced and investors focused on the probable revival of economic growth in the second quarter in the U.S. Rakuten, the online retailer, jumped 3% on speculation that the company may launch a discount airline with Air Asia.[/R]

Stocks in Tokyo closed higher on the speculation that the world’s largest economy is recovering from the fall in the first quarter.

The U.S. GDP shrinkage was revised to 2.9% in the second revision on weaker than estimated exports and fall in consumer spending driven by a decline in healthcare spending.

However, home sales are rebounding at the fastest pace in two years in May and consumer confidence has increase in the last two months.

The Nikkei 225 Stock Average gained 41.88 or 0.3% to 15,308.49 and the broader Topix index edged up 2.60 to 1,263.43.

The yen dropped to close at 101.76 against one U.S. dollar.

Stocks in Review

Milbon Co., Ltd fell 0.9% to 3,415 yen after the hair cosmetics services provider said net sales in the second-quarter ending in June climbed 6.5% to 12.17 billion from 11.43 billion yen a year ago.

Net income in the quarter declined 6.4% to 1.19 billion yen compared to 1.27 billion yen and earnings per share dropped to 72.68 yen from 76.89 yen a year earlier.

Oracle Corporation Japan gained 1.3% to 4,625 yen after the business applications developer provider reported net sales in the year ending in May rose 1.2% to 154.97 billion yen from 153.15 billion yen a year ago.

Net income in the year jumped 2.6% to 27.17 billion yen compared to 26.49 billion yen and diluted earnings per share increased to 213.63 yen from 208.38 yen a year earlier.

Rakuten Inc jumped 2.9% to 1,309 yen on the media reports that the online retailer plans to invest in to the discount airline business in Japan with Malaysia-based AirAsia Bhd as early as July.

The company spokesperson refused to confirm the media report and said at this time the company has no announcement to report.

Tokyo Electric Power Co Inc increased 0.5% to 421 yen and the company entered in a partnership with NGK Insulators Ltd., the electric power supplier, to enter the U.K. wholesale power market.

Yahoo Japan Corporation rose 0.9% to 471 yen after the internet search services provider intends to acquire the credit and financial operations of KC Card Co.