Nikkei in Tokyo Extends Weekly Gain, Yen Advances

Hiruki Nakamura
25 Jul, 2014
New York City

Stocks in Tokyo extended weekly gain on positive quarterly reports from Itochu, Chugai, Fanuc and Japan Exchange. Itochu jumped after the company announced a stock buyback plan of as much as $1 billion. The yen extended annual gain to 3.5% on rising tensions in Europe.

[R]4:30 PM Tokyo – Stocks in Tokyo extended weekly gain on positive quarterly reports from Itochu, Chugai, Fanuc and Japan Exchange. Itochu jumped after the company announced a stock buyback plan of as much as $1 billion. The yen extended annual gain to 3.5% on rising tensions in Europe.[/R]

Stocks in Japan climbed on earnings from Chugai Pharma, Fanuc Corp and Itochu were ahead of expectations however the latest data on inflation showed a decline.

The Ministry of Internal Affairs and Communications said consumer prices in June climbed 3.6% but down from 3.7% in May.

Core CPI, excluding the volatile food prices, advanced 3.3% but fell from 3.4% in May. Overall inflation, excluding food and energy prices, was 2.6% in the month.

Overall CPI for the Tokyo region increased 2.8% from a year ago to July and fell from 3% rate in June. Core CPI in Tokyo region advanced 2.8%.

The Bank of Japan reported corporate service prices in June jumped 3.6% from a year ago and on a monthly basis, prices rose 0.1% after adding 0.2% in May.

The Nikkei 225 Stock Average climbed 173.45 or 1.1% to 15,457.87 and the broader Topix index gained 11.49 to 1,281.35.

For the week, Nikkei 225 index jumped 1.9%.

The yen closed at 101.72 against one U.S. dollar and gained for the week 1% on the rising tensions in the Middle East and in Europe. The yen has gained 3.5% in the year so far after falling 18% in 2013.

Stocks in Review

Canon Inc fell 0.1% to 3,409 yen after the printers and digital camera maker said net sales in the second-quarter ending in June declined 4.1% to 926.80 billion yen from 966.88 billion yen a year ago period.

Net income in the quarter climbed 21.6% to 80.85 billion yen compared to 66.50 billion yen and diluted earnings per share jumped 72.61 yen from 57.68 yen a year earlier.

Fanuc Corp soared 5.3% to 18,390 yen after the factory automation provider reported net sales in the first-quarter ending in June surged 53.5% to 163.32 billion yen from 106.39 billion yen a year ago.

Net income in the quarter climbed 99% to 45.19 billion yen compared to 22.71 billion yen and earnings per share jumped to 230.96 yen from 116.05 yen a year earlier.

Japan Exchange Group Inc jumped 3.4% to 2,413 yen after the trading exchange operator reported

Sanko Metal Industrial Co., Ltd declined 4.9% to 233 yen after the construction company said net sales in the first-quarter ending in

ValueCommerce Co Ltd climbed 3.5% to 939 yen after the online advertising company stated net sales in the second-quarter ending in June soared 11.2% to 6.26 billion yen from 5.63 billion yen a year ago period.

Net income in the quarter jumped 7.4% to 511 million yen compared to 476 million yen and diluted earnings per share increased to 15.30 yen from 14.34 yen a year earlier.