Nikkei in Japan Surges on Domestic Earnings Reports

Hiruki Nakamura
29 Oct, 2014
New York City

Stocks in Tokyo closed higher after domestic companies reported better than expected earnings. Investors also took a positive view on the outlook for the stimulus in Europe and estimated rates in the U.S. will remain low in the U.S.

[R]4:30 PM Tokyo – Stocks in Tokyo closed higher after domestic companies reported better than expected earnings. Investors also took a positive view on the outlook for the stimulus in Europe and estimated rates in the U.S. will remain low in the U.S.[/R]

Stocks in Tokyo soared and market indexes extended gains of last two weeks.

The Ministry of Economy, Trade and Industry reported seasonally adjusted industrial production in September climbed 2.7% to 11.24 trillion yen following the 1.9% decline in August.

On a yearly basis, industrial production increased 0.6% compared to 3.3% drop in the previous month.

The Nikkei 225 Stock Average climbed 224 or 1.5% to 15,553.91 and the broader Topix index jumped 18.64 or 1.5% to 1,270.64.

The yen closed at 108.07 against one dollar.

Stocks in Review

East Japan Railway Company slid 0.07% to 8,282 yen after the railway transportation company reported revenues in the first-half ending in September rose 0.8% to 1.36 trillion yen from 1.35 trillion yen a year ago period.

Net income in the quarter edged up 0.2% to 136.02 billion yen compared to 135.76 billion yen and earnings per share increased to 345.86 yen from 343.96 yen in the same period a year ago.

Hitachi Construction Machinery Co Ltd climbed 3.9% to 2,152 yen after the construction equipment and industrial vehicles maker said net sales in the second-quarter ending in September rose 4.1% to 389.14 billion yen from 373.74 billion yen a year ago period.

Net income in the quarter jumped 4% to 11.12 billion yen compared to 10.70 billion yen and diluted earnings per share gained to 52.34 yen from 50.37 yen in the same period a year ago.

Nintendo Co., Ltd rose 0.2% to 11,120 yen after the entertainment products maker reported net sales in the second-quarter ending in September declined 12.8% to 171.40 billion yen from 196.58 billion yen a year ago period.

Net income in the quarter surged to 14.30 billion yen compared to 600 million yen and earnings per share climbed to 120.81 yen from 4.69 yen in the same period a year ago.

Omron Corporation surged 7.6% to 4,905 yen after the medical equipment and general machinery maker revised revenue forecast for the year to jump 4.4% to 835 billion yen and net income to climb 22.5% to 62.5 billion yen.

Shionogi & Co Ltd gained 0.9% to 2,657 yen after the pharmaceutical company reported net sales in the second-quarter ending in September dropped 6.4% to 129.84 billion yen from 138.72 billion yen a year ago period.

Net income in the quarter tumbled 53.9% to 9.71 billion yen compared to 21.09 billion yen and diluted earnings per share declined to 28.98 yen from 62.93 yen in the same period a year ago.