Japan Index Relapses 2% After Officials Question Nikkei Pension Report

Hiruki Nakamura
21 Oct, 2014
New York City

Market indexes in Tokyo fell back after a record one-day rally in more than a year. The yen gained and the government officials clarified that the pension fund has still not decided on the allocation plan, contradicting the Nikkei newspaper report a day ago.

[R]4:30 PM Tokyo – Market indexes in Tokyo fell back after a record one-day rally in more than a year. The yen gained and the government officials clarified that the pension fund has still not decided on the allocation plan, contradicting the Nikkei newspaper report a day ago.[/R]

Market indexes in Tokyo fell back after surging on the speculation that the government pension fund is set to increase its stock allocation.

The indexes traded lower after a record one-day surge in more than a year and investors digested better-than-expected economic and industrial production data from China.

The Nikkei 225 Stock Average declined 306.95 or 2% to 14,804.28 and the broader Topix index slumped 18.98 or 1.5% to 1,205.36.

The yen closed at 107.11 against one dollar.

Chinese government agency reported September quarter economic growth was better-than-expected at 7.3% and industrial production rose 8%.

Stocks in Review

Japan Steel Works Ltd declined 6.5% to 357 yen and the industrial machinery maker plans to book one-time loss of 16 billion yen to account for problems linked to wind power generator parts.

KDDI Corp dropped 1.4% to 6,322 yen after the mobile phone operator and mobile game site operator Gree Inc. formed a business alliance to support Japanese and overseas game developers.

Mitsubishi Tanabe Pharma Corporation slipped 1.5% to 1,566 yen after the pharmaceutical products maker revised sales forecast for the year to drop 1.2% to 198.50 billion yen but net income to surge 54.8% to 32.50 billion yen.

Pal Co., Ltd fell 0.5% to 3,230 yen after the apparel retailer reported net sales in the first-half ending in August jumped 6.6% to 51.70 billion yen from 48.49 billion yen a year ago period.

Net income in the quarter surged 45.9% to 2.03 billion yen compared to 1.39 billion yen and earnings per share jumped to 92.45 yen from 63.37 yen in the same period a year ago.

SPK Corporation gained 0.5% to 1,875 yen after the industrial machinery and vehicles dealer said net sales in the second-quarter ending in September climbed 9.5% to 18.32 billion yen from 16.73 billion yen a year ago period.

Net income in the quarter soared 16.5% to 471 million yen compared to 405 million yen and earnings per share climbed to 91.15 yen from 77.51 yen in the same period a year ago.