Topix in Tokyo Extends Loss to 7.7% in 2-week Plunge

Hiruki Nakamura
10 Oct, 2014
New York City

Market indexes in Japan declined for the second week in a row and the Topix index fell 3.1% and plunged 7.7% from the recent high on September 25. For the week, the Nikkei 225 declined 2.6%. The yen gained, first weekly rise since August.

[R]4:30 PM Tokyo – Market indexes in Japan declined for the second week in a row and the Topix index fell 3.1% and plunged 7.7% from the recent high on September 25. For the week, the Nikkei 225 declined 2.6%. The yen gained, first weekly rise since August.[/R]

Stocks in Tokyo dropped more than 1% after market indexes across Asia plunged following overnight losses in the U.S. markets.

The Nikkei 225 Stock Average dropped 178.38 or 1.2% to 15,300.55 and the broader Topix index slipped 17.69 or 1.4% to 1,243.09.

For the week, Nikkei 225 declined 2.6%.

The yen gained 0.2% and closed at 107.99 against one dollar.

The sharp sell-off was prompted on the worries that the global economies are likely to face headwinds and the European economies are expected to shrink or fall in recession as the central banks looks for ways to revive economic growth and struggle to revive inflation and aggregate demand.

Stocks in Review

Mitsubishi Materials Corp dropped 2.6% to 332 yen after the Nikkei newspaper reported operating profit of the construction materials maker for the first-half to decline to 30 billion yen, less than the estimate of 33 billion yen.

Central Security Patrols Co Ltd dropped 1.7% to 1,165 yen after the security business and real estate developer reported net sales in the second-quarter ending in August rose 3.3% to 20.99 billion yen from 20.32 billion yen a year ago period.

Net income in the year dropped 6.8% to 328 million yen compared to 352 million yen and earnings per share fell to 22.85 yen from 24.51 yen in the same period a year ago.

Milbon Co., Ltd slipped 1.6% to 3,430 yen after the cosmetics products maker said net sales in the third-quarter ending in September jumped 5.3% to 18.44 billion yen from 17.51 billion yen a year ago period.

Net income in the year fell 4.8% to 1.85 billion yen compared to 1.94 billion yen and earnings per share decreased to 112.71 yen from 117.57 yen in the same period a year ago.

Rakuten, Inc fell 0.6% to 1,165 yen after the e-commerce company completed the acquisition of the U.S.-based Ebates Inc. for a total consideration of about 104.7 billion yen or $981 million.

Transaction Co., Ltd dropped 2% to 865 yen after the healthcare goods maker reported net sales in the year ending in August climbed 7.1% to 10.12 billion yen from 9.44 billion yen a year ago period.

Net income in the year declined 11.6% to 388 million yen compared to 496 million yen and diluted earnings per share slipped to 59.98 yen from 68.08 yen in the same period a year ago.