Nikkei in Tokyo Plunges 2.4% on Recession Worries

Hiruki Nakamura
14 Oct, 2014
New York City

Market indexes in Tokyo traded lower and Nikkei extended weekly losses and the Topix dropped to the low not seen since May 30. BIC Camera reported annual sales increased 3%. LIXIL Group estimated weak sales and earnings outlook.

[R]4:30 PM Tokyo – Market indexes in Tokyo traded lower and Nikkei extended weekly losses and the Topix dropped to the low not seen since May 30. BIC Camera reported annual sales increased 3%. LIXIL Group estimated weak sales and earnings outlook.[/R]

Market indexes in Tokyo extended weekly losses after a three-day weekend and the Nikkei plunged 2.4% and the yen advanced.

The growing worries of global economic slowdown and the rising prospects of Japan sliding in to a recession sent market indexes lower for the first day of trading this week.

The Nikkei 225 Stock Average declined 364.04 or 2.4% to 14,936.51 and the broader Topix index dropped 28.82 or 2.3% to 1,214.27.

The yen gained 0.2% and closed at 107.09 against one dollar.

Stocks in Review

BIC Camera Inc rose 0.3% to 991 yen after the home appliances retailer reported net sales in the year ending in August jumped 3% to 829.83 billion yen from 805.38 billion yen a year ago period.

Net income in the period surged 304.3% to 9.85 billion yen compared to 2.44 billion yen and diluted earnings per share climbed to 56.41 yen from 14.19 yen in the same period a year ago.

Ichigo Group Holdings Co Ltd declined 5.3% to 234 yen after the real estate investment company said revenues in the first-half ending in August tumbled 52% to 9.88 billion yen from 20.59 billion yen a year ago period.

Net income in the period plunged 9.6% to 2.49 billion yen compared to 2.76 billion yen and diluted earnings per share slipped to 4.95 yen from 6.05 yen in the same period a year ago.

LIXIL Group Corp slipped 1.2% to 2,123 yen after the bathroom accessories maker revised its net sales forecast for the first-half ending in September to drop 5.4% to 790 billion yen from earlier estimate of 835 billion yen.

The company expected net income in the first-half to tumble 78.9% to 4 billion yen compared to previous guidance of 19 billion yen.

Nomura Real Estate Master Fund slid 0.7% to 133,700 after the real estate developer reported revenues in the first-half ending in August dropped 3.2% to 9.47 billion yen from 9.18 billion yen a year ago period.

Net income in the period declined 161% to 4.08 billion yen compared to 4.86 billion yen and diluted earnings per share slumped to 2,450 yen from 2,918 yen in the same period a year ago.