Stocks in Tokyo in 3-day Slump; Rakuten, Brothers and Lixil Sales Advance

Hiruki Nakamura
04 Aug, 2014
New York City

Investors in Tokyo reacted to international developments and market indexes declined for the third day in a row. Brothers Industries quarterly sales increased 15%, Lixil Group sales rose 10% and Rakuten sales soared 15%.

[R]4:30 PM Tokyo – Investors in Tokyo reacted to international developments and market indexes declined for the third day in a row. Brothers Industries quarterly sales increased 15%, Lixil Group sales rose 10% and Rakuten sales soared 15%.[/R]

Stocks in Tokyo declined for a third day and financial and banking stocks led the decline and Softbank was in focus after a competing bid emerged for its proposed merger of U.S. wireless carriers Sprint and T Mobile.

The Nikkei 225 Stock Average slipped 48.61 or 0.3% to 15,474.50 and the broader Topix index slid 5.11 to 1,276.19.

The yen closed at 102.65 against one U.S. dollar

Euro zone developments were in focus after Portugal was forced to bailout Banco Espirito Santo SA for 4.9 billion euros or $6.6 billion in a deal that will protect depositors but junior bond holders will face losses.

Softbank declined nearly 4% after the French company Iliad SA’s founder Xavier Niel stepped up the campaign for the bid to acquire T-Mobile U.S.

Stocks in Review

Brother Industries, Ltd climbed 4.4% to 1,976 yen after the office equipment maker reported net sales in the first-quarter ending in June advanced 15.2% to 160.44 billion yen from 139.31 billion yen a year ago period.

Net income in the quarter surged to 29.39 billion yen compared to 1.34 billion yen and diluted earnings per share jumped to 110.95 yen from 5 yen a year earlier.

Calbee Inc jumped 3.7% to 3,185 yen after the bakery food and cereal food maker said revenue in the first-quarter ending in June soared 9.9% to 52.27 billion yen from 47.55 billion yen a year ago period.

Net income in the quarter jumped 5.1% to 3.38 billion yen compared to 3.21 billion yen and earnings per share rose to 25.31 yen from 24.38 yen a year earlier.

LIXIL Group Corporation slid 0.4% to 2,476 yen after the building decorative accessories maker reported net sales in the first-quarter ending in June climbed 9.5% to 381.48 billion yen from 348.42 billion yen a year ago period.

Net income in the quarter tumbled 98.8% to 109 million yen compared to 8.94 billion yen and diluted earnings per share slumped to 0.37 yen from 30.64 yen a year earlier.

Rakuten Inc dropped 2.4% to 1,284 yen after the e-commerce company reported revenue in the second-quarter ending in June surged 14.8% to 276.60 billion yen from 240.88 billion yen a year ago period.

Net income in the quarter slipped 9.5% to 23.35 billion yen compared to 25.79 billion yen and diluted earnings per share decreased to 17.39 yen from 19.41 yen a year earlier.

Suruga Bank Ltd slipped 1.1% to 2,017 yen after the financial service provider reported revenue in the first-quarter ending in June jumped 5.6% to 30.54 billion yen from 28.90 billion yen a year ago period.

Net income in the quarter soared 12.8% to 6.94 billion yen compared to 6.15 billion yen and diluted earnings per share increased to 29.27 yen from 25.99 yen a year earlier.