Tokyo Stocks in 4-day Rise, Chugai Soars 15% on Roche Speculation

Hiruki Nakamura
18 Aug, 2014
New York City

Stocks in Tokyo closed higher for the fourth day in a row and resource linked stocks gained. Chugai Pharmaceuticals soared 15% on the speculation the Roche Holding may make a bid for the rest of the stake in the company. Geopolitical risks continued to weigh on markets in Tokyo and Asia.

[R]4:30 PM Tokyo – Stocks in Tokyo closed higher for the fourth day in a row and resource linked stocks gained. Chugai Pharmaceuticals soared 15% on the speculation the Roche Holding may make a bid for the rest of the stake in the company. Geopolitical risks continued to weigh on markets in Tokyo and Asia.[/R]

Market indexes in Tokyo extended gains for the fourth day in a row and the yen traded above 102 mark after oil prices lifted stocks in the resource sector.

Investors focused on domestic corporate news in the absence of economic data and stocks gained after people close to Roche Holding suggested that the company may make a bid on the rest of the stake in Chugai Pharma.

The Nikkei 225 Stock Average edged up 4.26 to 15,322.60 and the broader Topix index rose 0.58 to 1,271.26.

The yen closed at 102.41 against one U.S. dollar.

Stocks in Review

Chugai Pharmaceutical Co, Ltd surged 15.4% to 3,825 yen after the media report that Switzerland-based Roche Holding AG is in talks to buy the remaining 40% stake in the company that it doesn''t already own for about $10 billion.

However, Chugai said “report is not based on any announcement made by Chugai or Roche.” Roche declined to comment on market rumors.

Innotech Corporation gained 0.9% to 530 yen after the electronic components maker said net sales in the first-quarter ending in June soared 36.6% to 6.25 billion yen from 4.57 billion yen a year ago period.

Net income in the quarter surged 40.5% to 260 million yen compared to 185 million yen and diluted earnings per share increased to 14.50 yen from 10.62 yen a year earlier.

Konoike Transport Co Ltd increased 1.6% to 2,276 yen after the transportation services provider reported net sales in the first-quarter ending in June jumped 4.3% to 59.25 billion yen from 56.81 billion yen a year ago period.

Net income in the quarter climbed 9.9% to 1.45 billion yen compared to 1.32 billion yen and earnings per share gained to 50.90 yen from 46.31 yen a year earlier.