Daily Decline in Tokyo Extends Weekly Loss to 2.3%, Yen Gains

Hiruki Nakamura
11 Jul, 2014
New York City

Stocks in Tokyo declined following market weakness across the euro zone and the yen advanced for the second day in a row. Fast Retailing declined 2% after the retailer lowered its annual earnings outlook for the second time on losses linked to its premium-denim unit.

[R]4:30 PM Tokyo – Stocks in Tokyo declined following market weakness across the euro zone and the yen advanced for the second day in a row. Fast Retailing declined 2% after the retailer lowered its annual earnings outlook for the second time on losses linked to its premium-denim unit.[/R]

Market indexes in Tokyo closed lower following world market decline on the growing worries of bank financial health spreading from Portugal to the rest of the euro zone.

The broader Topix index declined 2.3% in the week, the largest weekly decline since April 11.

The Nikkei 225 Stock Average slipped 52.43 or 0.3% to 15,164.04 and the broader Topix index slid 4.06 to 1,255.19. For the week end, Nikkei 225 dropped 1.8%.

The yen advanced 0.1% following a 0.3% rise yesterday to close at 101.25 against one U.S. dollar.

Stocks in Review

Activia Properties Inc., the real estate developer said net sales in the year ending in May climbed 27% to 7.78 billion yen from 6.12 billion yen a year ago period.

Net income in the year soared 25.5% to 4 billion yen compared to 3.19 billion yen and earnings per share increased to 16.19 yen from 15.52 yen a year earlier.

Central Security Patrols Co., Ltd slipped 1.5% to 1,109 yen after the security and real estate group stated net sales in the first-quarter ending in February jumped 5.3% to 10.75 billion yen from 10.21 billion yen a year ago.

Net income in the quarter climbed 17.6% to 149 million yen compared to 127 million yen and diluted earnings per share advanced to 10.43 yen from 8.87 yen a year earlier.

Canon Inc jumped 2.4% to 3,338 yen after the Nikkei news reported electronic products maker expected operating profit for the quarter ending in June to climb 10%.

Fast Retailing Co Ltd dropped 1.9% to 32,855 yen after the apparel retailer lowered its profit forecast for the second time and forecasted net income for the year ending in August at78 billion yen, less than the earlier estimate of 88 billion yen.

The retailer cited losses at its J Brand premium denim unit in the U.S.

Japan Tobacco Inc gained 0.5% to 3,719 after the tobacco and cigarette maker said domestic revenue in June dropped 3.6% to 50.2 billion yen and for the first-half slid 0.7% to 306.1 billion yen from a year earlier.

Kurotani Corporation rose 0.4% to 542 yen after the aluminum and bronze products seller reported net sales in the third-quarter ending in May fell 1.4% to 37.68 billion yen from 38.23 billion yen a year ago.

Net income in the quarter tumbled 98.5% to 7 million yen from 532 million yen and earnings per share declined to 1.09 yen from 74.30 yen a year earlier.