Weaker Yen and Earnings Lift Nikkei; ANA, Daiwa, Japan Tobacco in Focus

Hiruki Nakamura
30 Oct, 2014
New York City

Stocks in Tokyo closed higher and the yen dropped after the U.S. dollar at strongest since October 6. Daiwa Securities said second-quarter earnings increased 4.4% on higher underwriting fees and trading income. Japan Tobacco sales increased 1.3% and net declined 7.4%.

[R]4:30 PM Tokyo – Stocks in Tokyo closed higher and the yen dropped after the U.S. dollar at strongest since October 6. Daiwa Securities said second-quarter earnings increased 4.4% on higher underwriting fees and trading income. Japan Tobacco sales increased 1.3% and net declined 7.4%.[/R]

Stocks in Tokyo advanced ahead of Bank of Japan policy committee meeting as the members debate strongest industrial production since January and better than expected retail sales in September.

Investors also paid close attention to earnings from ANA Holdings, Daiwa Securities, Japan Tobacco and Showa Denko.

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 jumped 104.29 or 0.7% to 15,658.20 and the broader Topix index gained 8.26 to 1,278.90.

The yen closed at 109.01 against one dollar.

Stocks in Review

ANA Holdings Inc rose 0.9% to 256.80 yen after the airline company reported revenues in the first-half ending in September climbed 9.1% to 854.82 billion yen from 783.20 billion yen a year ago period.

Net income in the period surged 78.2% to 35.77 billion yen compared to 20.07 billion yen and earnings per share jumped to 10.25 yen from 5.74 yen in the same period a year ago.

Daiwa Securities Group gained 0.1% to 796 yen after the investment, financial and brokerage services provider said net sales in the second-quarter ending in September declined 8.3% to 304.36 billion yen from 331.98 billion yen a year ago period.

Net income in the quarter plunged 23% to 71.47 billion yen compared to 92.83 billion yen and diluted earnings per share slumped to 41.57 yen from 54.15 yen in the same period a year ago.

Eisai Co., Ltd slipped 1.2% to 4,228 yen after the pharmaceutical maker reported net sales in the first-half ending in September plummeted 11.6% to 269.05 billion yen from 304.45 billion yen a year ago period.

Net income in the period declined 65.7% to 10.41 billion yen compared to 30.35 billion yen and diluted earnings per share decreased to 36.46 yen from 106.33 yen in the same period a year ago.

Japan Tobacco Inc slid 0.07% to 3,619 yen after the tobacco and cigarette producer said net sales in the first-half ending in September rose 1.3% to 1.17 trillion yen from 1.16 trillion yen a year ago period.

Net income in the period declined 7.4% to 223.15 billion yen compared to 241.05 billion yen and diluted earnings per share fell to 120.61 yen from 130.41 yen in the same period a year ago.

Showa Denko K.K increased 1.5% to 138 yen after the maker of electrodes and catalyst chemicals reported net sales in the third-quarter ending in September jumped 4.9% to 647.56 billion yen from 617.54 billion yen a year ago period.

Net income in the quarter tumbled 67.7% to 2.18 billion yen compared to 6.75 billion yen and earnings per share dropped to 1.46 yen from 4.51 yen in the same period a year ago.

Yahoo Japan Corporation declined 5.6% to 390 yen after the internet search services provider said revenue in the second-quarter ending in September jumped 2.5% to 103.3 billion yen from 100.7 billion yen a year ago period.

Net income in the quarter slipped 3.4% to 30.2 billion yen compared to 31.2 billion yen and diluted earnings per share fell to 5.30 yen from 5.43 yen in the same period a year ago.

Yahoo said advertising revenue in the quarter climbed 7.2% to 60.5 billion yen and advertising revenue through smart-phone surged 73.9% compared to same period a year ago.