Indexes in Japan Rest and Yen Advances as Market Loses Momentum

Hiruki Nakamura
17 Jul, 2014
New York City

The yen gained 0.2% and market indexes in Tokyo closed lower led by a fall in freight shipping and financial brokerage companies. Investors turned cautious ahead of the revision on the economic update schedule to release after market close. Sumitomo Electric Industries Ltd revised its full-year outlook.

[R]4:30 PM Tokyo – The yen gained 0.2% and market indexes in Tokyo closed lower led by a fall in freight shipping and financial brokerage companies. Investors turned cautious ahead of the revision on the economic update schedule to release after market close. Sumitomo Electric Industries Ltd revised its full-year outlook.[/R]

Stocks in Tokyo closed lower after freight shipping and brokerage firms led the decline and Orix acquired a logistics unit control from South Korea based Hyundai Group.

The Nikkei 225 Stock Average slid 9.04 to 15,370.26 and the broader Topix index inched lower 0.21 to 1,273.38.

The yen closed at 101.49 against one U.S. dollar.

Stocks in Review

Askul Corporation gained 1.5% to 3,290 yen after the office products retailer said total sales in June climbed 8% to 20.83 billion yen from 19.28 billion yen and total sales from Lohaco business surged 128.6% to 1.28 billion in June compared to 559 million yen a year ago month.

Ichigo Group Holdings Co., Ltd. fell 0.6% to 321 yen after the real estate investment company revenue in the first-quarter ending in May soared 49.5% to 7.97 billion yen from 7.43 billion yen a year ago period.

Net income in the quarter surged 176.2% to 4.53 billion yen compared to 1.64 billion yen and earnings per share surged to 9.83 yen from 3.66 yen a year earlier.

Komatsu Wall Industry Co plunged 7.6% to 2,720 yen after the movable partitions maker reported net sales in the first-quarter increased 4.9% to 5.76 billion yen from 5.49 billion yen a year ago period.

Net profit in the quarter climbed 15% to 166 million yen compared to 144 million yen and earnings per share 16.49 yen from 14.34 yen a year earlier.

Orix Corporation gained 0.7% to 1,630 yen after the financial leasing company and a South Korean partner agreed to acquire a 70% controlling stake in a logistics unit of South Korean conglomerate Hyundai Group for 240 billion won or $230 million.

Poletowin Pitcrew Holdings,Inc dropped 2.1% to 1,185 yen after the software debug and verification service provider said net sales in the first-quarter ending in April advanced 8% to 3.51 billion yen from 3.25 billion yen a year ago.

Net income in the quarter tumbled 19.3% to 263 million yen compared to 326 million yen and diluted earnings per share 13.65 yen from 16.75 yen a year earlier.

Sumitomo Electric Industries Ltd increased 1.1% to 1,497 yen after the electric wires and cables maker forecasted profit for the year to climb 59% to 111 billion yen.

Separately, the company said Sumitomo 3M will acquire its own shares from the company and agreed to pay about 92.93 billion yen or $885 million. The transaction is expected to complete on September 1.

Sumitomo Electric expects an extraordinary income of about 87 billion yen on a non-consolidated basis for the second-quarter of fiscal year ending in March 2015.