Inflation in Japan Slows in August, Nikkei Falls 0.9%

Hiruki Nakamura
26 Sep, 2014
New York City

Stocks in Tokyo closed lower a day after most shares trade ex-dividend. For the week, the Nikkei advanced 1.8% and inflation in Japan slowed in August. The yen traded near 109 against one dollar. Fanuc lifted its annual profit estimate.

[R]4:30 PM Tokyo – Stocks in Tokyo closed lower a day after most shares trade ex-dividend. For the week, the Nikkei advanced 1.8% and inflation in Japan slowed in August. The yen traded near 109 against one dollar. Fanuc lifted its annual profit estimate.[/R]

Stocks in Tokyo closed lower after stocks traded ex-dividend and the Topix Index fell from a six-year high.

The Ministry of Internal Affairs and Communications said consumer prices excluding fresh food rose 3.1% in August from a year ago month after rising 3.3% in July.

Overall inflation was slowed to 3.3% from a year ago after rising 3.4% in the previous month.

Consumer prices in Tokyo excluding fresh food, a leading indicator for national consumer price index, jumped 2.6% from a year earlier in September, after rising 2.7% in August.

Overall Tokyo CPI climbed 2.9% compared to 2.8% in the previous month.

The Nikkei 225 Stock Average slipped 144.28 or 0.9% to 16,229.86 and the broader Topix index dropped 14.48 or 1.1% to 1,331.95. For the week, Nikkei 225 jumped 1.8%.

The yen traded near 108.99 against one U.S. dollar.

Stocks in Review

Daiichi Sankyo Company, Limited dropped 2.6% to 1,758.50 after the pharmaceutical company received approval from the Ministry of Health, Labour and Welfare in Japan for the use of LIXIANA during orthopedic surgery for the prevention of ischemic stroke.

Fanuc Corp climbed 4.8% to 20,310 yen after the industrial robot maker lifted its net income forecast for the year to surge 26.3% to 185.1 billion yen from earlier guidance of 146.5 billion yen. Net sales are expected to surge 29.4% to 688.2 billion yen compared to previous estimate of 531.8 billion yen

Fanuc reported net sales in the first-half is expected to increase 14.3% to 345.5 billion yen from the previous estimate of 302.4 billion yen and net income is expected to jump 10.3% to 94.4 billion from the earlier guidance of 85.6 billion yen.

Ichibanya Co., Ltd gained 1% to 5,040 yen after the curry restaurants operator reported net sales in the first-quarter ending in August jumped 5.1% to 11.09 billion yen from 10.55 billion yen a year ago period.

Net income in the quarter soared 62.4% to 764 million yen compared to 470 million yen and earnings per share climbed to 47.91 yen from 29.50 yen a year earlier.

Milbon Co., Ltd slid 0.1% to 3,580 yen after the hair cosmetics maker said net sales in the third-quarter ending in August climbed 5.3% to 18.44 billion yen from 17.51 billion yen a year ago period.

Net income in the quarter dropped 4.8% to 1.85 billion yen compared to 1.94 billion yen and earnings per share fell to 112.71 yen from 117.57 yen a year earlier.