2-day Rise in Yen Drags Nikkei in Tokyo

Hiruki Nakamura
10 Nov, 2014
New York City

Market indexes in Japan closed lower after advancing for three weeks in a row and the yen strengthened. The yen extended two-day gains to 1.2% after falling sharply in the last two weeks. Takata plunged 17% after U.S. lawmakers demanded criminal investigation of air-bag recall crisis.

[R]4:30 PM Tokyo – Market indexes in Japan closed lower after advancing for three weeks in a row and the yen strengthened. The yen extended two-day gains to 1.2% after falling sharply in the last two weeks. Takata plunged 17% after U.S. lawmakers demanded criminal investigation of air-bag recall crisis.[/R]

Stocks in Tokyo traded lower and the yen strengthened and investors focused on domestic companies.

Investors stayed on the side line after market indexes surged for three weeks in a row and the yen rebounded from the losses in the last four weeks.

The Nikkei 225 Stock Average slipped 99.85 or 0.6% to 16,780.53 and the broader Topix index slid 3.56 to 1,360.11.

The yen rebounded to close at 114.10 against one dollar.

Stocks in Review

F@N Communications Inc increased 0.6% to 1,063 yen after the advertising service provider said net revenue in the third-quarter ending in September soared 43.7% to 23.28 billion yen from 16.19 billion yen a year ago period.

Net income in the period climbed 48.8% to 2.68 billion yen compared to 1.80 billion yen and diluted earnings per share increased to 34.32 yen from 23.33 yen in the same period a year ago.

Kansai Electric Power Co Inc declined 3.2% to 1,120 yen after the Kyodo news reported that the city of Osaka, intends to sell its entire holding in the electric power supplier. The city controls less than 9% stake in the utility.

SIIX Corp gained 0.8% to 1,951 yen after the electronic parts and devices maker said net sales in the third-quarter ending in September fell 1.1% to 305 million yen from 302 million yen a year ago period.

Net income in the quarter slid 1.1% to 176 million yen compared to 178 million yen and earnings per share slipped to 41.74 yen from 42.08 yen in the same period a year ago.

Sumitomo Metal Mining Co., Ltd jumped 2.1% to 1,527 yen after the non-ferrous metals producer reported net sales in the first-half ending in September climbed 7.1% to 445.47 billion yen from 416.01 billion yen a year ago period.

Net income in the period surged 38.5% to 55.45 billion yen compared to 40.02 billion yen and diluted earnings per share jumped to 89.52 yen from 64.69 yen in the same period a year ago.

Toshiba Corporation rose 0.2% to 499.80 yen after the electronic device maker plans to invest 3 billion yen or about $30 million to increase production capacity at Toshiba Transmission & Distribution Systems India Pvt. Ltd. in Hyderabad.