Nikkei Shots Up 2.3% Following U.S. Fed Rate Decision

Hiruki Nakamura
18 Dec, 2014
New York City

Stocks in Japan shot up following a surge in U.S. market indexes after the Fed appeared to be in no hurry to advance rate hike schedule in 2015. Adventure, the online air ticket site operator, soared 87% on debut. Dairei Co and Gumi closed below initial public offering prices.

[R]4:30 PM Tokyo – Stocks in Japan shot up following a surge in U.S. market indexes after the Fed appeared to be in no hurry to advance rate hike schedule in 2015. Adventure, the online air ticket site operator, soared 87% on debut. Dairei Co and Gumi closed below initial public offering prices.[/R]

Stocks in Tokyo soared following a surge in U.S. markets in overnight trading after the Federal Reserve showed no hurry to increase rate soon.

As widely expected, the Fed left its key interest rate target between zero and 0.25% at the last meeting of the year but lowered the estimate for the inflation and jobless rate in 2015 from its previous meeting in September.

The Fed estimated jobless rate at 5.2% and inflation to be lower than 1.6%, below the central bank’s target of 2%.

Fed’s policy committee also debated the implication of recent price decline and global markets volatility but decided to gravitate on the long term positive forces unleashed form the cheaper fuel and steady increase in job creation.

The Nikkei 225 Stock Average climbed 390.32 or 2.3% to 17,210.05 and the broader Topix index jumped 24.31 or 1.8% to 1,376.32.

The yen slid 0.1% to 118.65 against one dollar.

Stocks in Review

Adventure Inc an online domestic air ticket seller surged 87.2% to close at 4,680 yen after the company completed initial public offering.

Dairei Co declined 7.5% to 1,665 yen after the frozen food maker completed its public offering of 1,800 yen.

Gumi Inc the mobile game maker declined 4.1% and the company priced its initial public offering at 3,300 yen and closed 3,165 yen.

Ichigo Real Estate Investment Corp rose 0.6% to 87,000 yen after the residential real estate developer said net sales first-half ending in October edged up 0.5% to 4.61 billion yen from 4.64 billion yen a year ago period.

Net income in the period jumped 7.9% to 1.41 billion compared to 1.31 billion yen and earnings per share increased to 1,373 yen from 1,295 yen in the same period a year ago.

The company issued 8,320 new shares at the price of 80,266 yen per share or total of 667,813,120 yen through a private placement to SMBC Nikko Securities Inc.

Tokyo Gas Co Ltd increased 2.2% to 628.50 yen after the gas company started its first commercial hydrogen station in Nerima Ward, Tokyo.