Industrial Production Jumps 1%; Honda, Nomura, NTT DoCoMo, Toshiba in Focus

Hiruki Nakamura
30 Jan, 2015
New York City

Stocks in Tokyo closed higher after industrial production jumped 1% and inflation was below target set by the Bank of Japan. Jobless rate in December was unchanged at 3.4% and housing starts dropped 9%, first monthly decline in five years.

[R]4:30 PM Tokyo – Stocks in Tokyo closed higher after industrial production jumped 1% and inflation was below target set by the Bank of Japan. Jobless rate in December was unchanged at 3.4% and housing starts dropped 9%, first monthly decline in five years.[/R]

Stocks in Tokyo closed higher after the release of monthly jobless rate, inflation and industrial production data.

In addition, housing starts declined for the first time in five months in December.

The Ministry of Economy, Trade and Industry said seasonally adjusted industrial production in December jumped 1% followed by 0.5% contraction in November.

For the year, output increased 0.3% after falling 3.7% in the previous month.

The Ministry of Internal Affairs and Communications reported seasonally adjusted unemployment rate in December was unchanged at 3.4% and the number of unemployed persons in December was 2.1 million, a decrease of 6.7% from a year ago month.

Separately, the department said consumer price index in December rose 0.1% to 103.3 from the previous month and jumped 2.4% from a year ago month.

The Ministry of Land, Infrastructure, Transport and Tourism reported housing starts in December slightly increased 14.7% from 14.3% gain in November.

For the year, housing starts dropped 9% compared to the surge of 11% in the month a year ago and declined for the first time in five years.

The Nikkei 225 Stock Average gained 68.17 or 0.4% to 17,674.39 and the broader Topix index edged up 1.49 to 1,415.07.

For the week, Nikkei 225 increased 0.9% and for the month jumped 1.3%.

The yen closed at 117.92 against one dollar.

Stocks in Review

Daiichi Sankyo Company Limited jumped 2.3% to 1,713 yen after the pharmaceutical company reported revenues in the nine-month period ending in December climbed 4.1% to 838.17 billion yen from 805.53 billion yen a year ago period.

Net income in the period surged 43.1% to 102.23 billion yen compared to 71.44 billion yen and diluted earnings per share jumped to 144.92 yen from 101.29 yen in the same period a year ago.

Daiichi Sankyo forecasted revenues for the year ending in March to soar 19.5% to 900 billion yen and net income may about 65 billion yen.

Honda Motor Co. Ltd slipped 0.8% to 3,581 yen after the vehicles maker said revenues in the nine-month period ending in December advanced 6.3% to 9.29 trillion yen from 8.75 trillion yen a year ago period.

Net income in the period jumped 5.3% to 424.93 billion yen compared to 403.60 billion yen and earnings per share increased to 235.77 yen from 223.94 yen in the same period a year ago.

Honda forecasted revenues for the fiscal year to surge 8.9% to 12.90 trillion yen but net income to slump 5.1% to 545 billion yen from the earlier estimate of 565 billion yen.

For the year, Honda lowered its global unit sales to 4.45 million cars from the prior guidance of 4.62 million. The company estimated domestic unit sale to fall to 790,000 cars from the previous estimate of 890,000.

Nomura Holdings, Inc gained 1.5% to 634.50 yen after the financial service provider reported revenues in the nine-month period ending in December jumped 2.9% to 1.42 trillion yen from 1.38 trillion yen a year ago period.

Net income in the period declined 6.3% to 142.77 billion yen compared to 152.34 billion yen and diluted earnings per share fell to 38.03 yen from 39.83 yen in the same period a year ago.

NTT DoCoMo Inc increased 1.4% to 2,005 yen after the mobile communication service provider said revenues in the nine-month period ending in December dropped 1.1% to 3.33 trillion yen from 3.36 trillion yen a year ago period.

Net income in the period plunged 11.2% to 381.85 billion yen compared to 430.18 billion yen and earnings per share declined to 93.58 yen from 103.74 yen in the same period a year ago.

The company forecasted revenues for the year to drop 1.4% to 4.40 trillion yen and net income to decline 9.6% to 420 billion yen.

NEC Corp. tumbled 7.5% after the maker of computers and electronic devices missed operating profit estimates.

Toshiba Corporation gained 2.3% to 474.60 yen after the diversified conglomerate reported revenues in the nine-month period ending in December increased 4.2% to 4.72 trillion yen from 4.53 trillion yen a year ago period.

Net income in the period surged 85.8% to 71.9 billion yen compared to 38.7 billion yen and earnings per share climbed to16.98 yen from 9.13 yen in the same period a year ago.