Stocks in Tokyo Extend a 6-day Rally, Yen Weakens Above 120

Hiruki Nakamura
05 Dec, 2014
New York City

Japanese stocks and market indexes extended gains for the sixth day in a row and the Topix extended seven-year high. The yen dropped below 120 mark and economists and brokers held out for 125 against the U.S. dollar target.

[R]4:30 PM Tokyo – Japanese stocks and market indexes extended gains for the sixth day in a row and the Topix extended seven-year high. The yen dropped below 120 mark and economists and brokers held out for 125 against the U.S. dollar target.[/R]

Stocks and market indexes in Tokyo closed higher after the yen weakened and dropped below 120 mark.

Shares in Tokyo traded higher for the sixth day in a row and the Topix index followed by financial institutions extended a seven-year high mark.

Investors are still digesting the effect of weaker yen and lower oil prices on corporate earnings, however smaller companies dependent of imported goods are facing sharp fall in profitability.

Isuzu Glass Co, eighty year old glass maker, filed for bankruptcy protection after the maker of optical filter glass in Osaka on the rising costs of imported products from China and customers in Japan requesting lower prices.

Forty-two companies shut down or filed for bankruptcy protection in November and total of 301 companies have failed in the first eleven months of the year that are the casualty of the weaker currency, according to the Teikoku Databank Ltd.

The Cabinet Office announced preliminary data showed Japan''s leading index declined to 104 in October from 105.6 in September, the lowest since January 2013.

The Nikkei 225 Stock Average gained 33.24 or 0.2% to 17,920.45 and the broader Topix index rose 5.07 to 1,445.67.

For the week, Nikkei 225 climbed 2.6%.

The yen weakened 0.5% to 120.41 against one dollar.

Stocks in Review

Dentsu Inc rose 0.9% to 4,685 yen after the advertising and marketing company reported net sales in November soared 101.2% to 130.42 billion yen from a year ago month.

The media company said revenues form newspaper, television and marketing and promotion segment surged to 88.7%, 98% and 112.2% respectively.

Marubeni Corporation edged up 0.03% to 744.20 yen after the agrochemical group and Tokyo-based food wholesaler Kokubu & Co agreed to form a partnership by June 2015.

Marubeni plans to invest in a food and alcoholic beverage wholesaler and Kokubu plans to establish in Tokyo area in January 2016.

The partnership estimates to generate sales of about 400 billion yen a year.

Verite Co Ltd increased 1% to 99 yen after the jewelry retailer said total sales increase in November declined to 84.3% from 87% increase in October followed by 88.3% rise in September.

The company added average customer spending dropped to an increase of 99.6% from 101.6% gain in October and 105% surge in September.