Japan and India Pledge Closer Ties and to Hold Regular Military Exercises

Hiruki Nakamura
01 Sep, 2014
New York City

Stocks in Japan closed lower and the Topix declined 0.6% in the week and fell 0.9% in August. The yen slipped. Unemployment rate in July increased to 3.8%, core consumer price index was unchanged at 3.3% and industrial production declined 0.2%.

[R]4:30 PM Tokyo – Stocks in Japan closed lower and the Topix declined 0.6% in the week and fell 0.9% in August. The yen slipped. Unemployment rate in July increased to 3.8%, core consumer price index was unchanged at 3.3% and industrial production declined 0.2%.[/R]

Stocks in Japan gained and market indexes advanced despite weaker than expected official read on manufacturing in China.

However, the attention shifted to political developments between Japan and India. Japan announced its plan to increase investment in India in the next five years at the summit of prime ministers of two nations.

Two nations agreed to hold regular bilateral maritime exercises and affirmed their commitment to maritime security and the peaceful settlement of disputes under the international law.

Prime Minister of Japan Shinzo Abe pledged 50 billion yen or $480 million in loans for infrastructure projects and India also offered to ship rare earth minerals to Japan.

The Nikkei 225 Stock Average gained 52.01 or 0.3% to 15,476.60 and the broader Topix index rose 5.09 to 1,283.06.

The yen declined to close at 104.12 against one U.S. dollar.

Tensions between Russia and Ukraine rose after President Vladimir P. Putin supported statehood for eastern region of Ukraine.

Regions of Donetsk and Luhansk have self-declared independence and are supported by Russian armed forces. However, rebels are prepared to preserve the unity of Ukraine in exchange of greater autonomy.

Violence escalated at the border and at least four Russian battalions totalling 1,600 soldiers are participating in military operations in southeast Ukraine, National Security Council Spokesman Andriy Lysenko said in Kiev today.

Stocks in Review

CyberAgent, Inc climbed 4.2% to 3,710 yen after the advertisement agency received approval to change stock market listing to the first section of the Tokyo Stock Exchange from September 5.

DyDo Drinco, Inc fell 0.4% to 4,390 yen after the beverages maker reported net sales in the second-quarter ending in July dropped 2.4% to 75.76 billion yen from 77.65 billion yen a year ago period.

Net income in the quarter plunged 31.4% to 1.17 billion yen compared to 1.71 billion yen and diluted earnings per share declined to 70.89 yen from 103.31 yen a year earlier.

Fumakilla Ltd the chemical manufacturer surged 22.9% to 430 yen after Fuji TV reported about 10 people visiting Yoyogi Park or surrounding area of Tokyo are likely to catch with dengue fever.

ITO EN, Ltd slid 0.2% to 2,415 yen after the green tea, oolong tea; black tea maker reported net sales in the first-quarter ending in July edged down 0.4% to 118.7 billion yen from 119.2 billion yen a year ago period.

Net income in the quarter tumbled 68.6% to 937 million yen compared to 2.99 billion yen and diluted earnings per share dropped to 7.62 yen from 24.27 yen a year earlier.

Senshukai Co., Ltd rose 0.2% to 865 yen after the mail-orders retailer stated reported net sales in the second-quarter ending in June gained 1.8% to 74.05 billion yen from 72.74 billion yen a year ago period.

Net income in the quarter declined 26.4% to 914 million yen compared to 1.24 billion yen and diluted earnings per share slumped to 19.96 yen from 28.67 yen a year earlier.