Nikkei Rebounds1.7%; Fast Retailing Net Soares 64%, Honda Fined $70 M

Hiruki Nakamura
08 Jan, 2015
New York City

Stocks in Tokyo followed market advances in Europe and New York. Fast Retailing Co reported 64% jump in earnings on 23% increase in sales led by higher casual-wear sales and weaker yen. Honda Motor Co agreed to pay $70 million to the U.S. transportation regulator.

[R]4:30 PM Tokyo – Stocks in Tokyo followed market advances in Europe and New York. Fast Retailing Co reported 64% jump in earnings on 23% increase in sales led by higher casual-wear sales and weaker yen. Honda Motor Co agreed to pay $70 million to the U.S. transportation regulator.[/R]

Stocks in Tokyo tracked rising markets in Europe and New York and the yen traded near 119 mark against the dollar.

U.S. transportation regulator fined Honda Motor Co $70 million for underreporting injuries and the automaker agreed to a stricter oversight about injuries reporting.

The Nikkei 225 Stock Average climbed 281.77 or 1.7% to 17,167.10 and the broader Topix index jumped 17.87 or 1.3% to 1,377.67.

The yen strengthened to 118.90 against one dollar.

Investors reviewed the latest minutes of meeting released from the U.S. Federal Reserve and most policy makers showed willingness to lift interest rate in the second-half if economy continues to improve.

Japan Tobacco gained 1.4% to 3,150.50 yen after the activist investor based in the U.K., The Children’s Investment Fund, urged the company to buy back 150 billion yen and issue year-end dividend of 150 yen.

Stocks in Review

Fast Retailing Co Ltd jumped 2.3% to 44,405 yen after the clothing retailer reported revenues in the first-quarter ending in November soared 23.3% to 479.54 billion yen from 389.05 billion yen a year ago period.

Net income in the quarter surged 63.5% to 72.80 billion yen compared to 44.52 billion yen and diluted earnings per share jumped to 674.61 yen from 411.81 yen in the same period a year ago.

Jastec Co., Ltd closed unchanged at 797 yen after the software developer said net sales for the year soared 13.6% to 12.36 billion yen from 10.87 billion yen a year ago period.

Net income in the year surged 41.6% to 785 million yen compared to 554 million yen and diluted earnings per share increased to 45.03 yen from 32 yen in the same period a year ago.

Kirin Holdings Co Ltd climbed 2.2% to 1,456 yen after the Nikkei news reported alcohol beverages maker may generate operating profit for the year of about 120 billion yen.

Nintendo Co., Ltd gained 2.3% to 12,135 yen after the gaming machines and software developer signed partnership agreement with GungHo Online Entertainment Inc “Puzzle & Dragons: Super Mario Bros. Edition” for the 3DS handheld player.

The company plans to release games on April 29 in Japan at a retail price of 4,000 yen.