Monetary Base in Japan Rises 37.4%, Mineba in Focus

Hiruki Nakamura
03 Feb, 2015
New York City

Airlines closed lower in Tokyo after oil price rose to one-month high and the yen gained. Electronics and auto exporters fell after the yen strengthened 0.5%. Mineba Co reported rising sales and net income for nine-month period. Panasonic said it will close its television unit in China.

[R]4:30 PM Tokyo – Airlines closed lower in Tokyo after oil price rose to one-month high and the yen gained. Electronics and auto exporters fell after the yen strengthened 0.5%. Mineba Co reported rising sales and net income for nine-month period. Panasonic said it will close its television unit in China.[/R]

Stocks reacted to movements in the currency and commodities trading and market indexes closed lower.

Crude oil increased to one-month high and yen gained against the dollar, euro and Australian dollar after Australia unexpectedly lowered its rate by 25 basis points to 2.25%.

On the economic front, the Bank of Japan said the monetary base in January climbed 37.4% to 275.385 trillion yen while adjusted monetary base surged 50.2% to 277.267 trillion yen followed by 38.2% decline in December.

The Nikkei 225 Stock Average declined 222.19 or 1.3% to 17,335.85 and the broader Topix index slumped 16.36 to 1,392.39.

The yen closed at 117.18 against one dollar.

Stocks in Review

Minebea Co Ltd plunged 4.7% to 1,738 yen after the electronic device maker reported net sales in the nine-month period ending in December surged 30.2% to 361.96 billion yen from 277.93 billion yen a year ago period.

Net income in the period soared 114.9% to 43.23 billion yen compared to 20.12 billion yen and diluted earnings per share climbed to 78.70 yen from 40.43 yen per share in the same period a year ago.

Minebea forecasted net sales for the year to climb 31.9% to 490 billion yen and net income to jump 72.4% to 36 billion yen.

The U.S. Federal Bureau of Investigation said Japan-based bearings manufacturer agreed to plead guilty and pay $13.5 million criminal fine for conspiracy to fix prices for small sized ball bearings sold to customers in the United States and elsewhere.

NTT Data Corp gained 1.7% to 4,475 yen after the information technology company said net sales in the nine-month period ending in December soared 13.2% to 1.07 trillion yen from 942.52 billion yen a year ago period.

Net income in the period surged 114.6% to 21.74 billion yen compared to 10.13 billion yen and earnings per share jumped to 77.50 yen from 36.11 yen per share in the same period a year ago.

Nissan Chemical Industries, Ltd declined 4.1% to 2,098 yen after the fertilizer and chemical producer stated net sales in the nine-month period ending in December jumped 3.7% to 117.79 billion yen from 113.56 billion yen a year ago period.

Net income in the period climbed 7.7% to 11.82 billion yen compared to 10.97 billion yen and earnings per share increased to 73.81 yen from 66.99 yen per share in the same period a year ago.

Nissan Chemical forecasted net sales for the year to advance 4.5% to 171 billion yen and rose 6.6% to 17.80 billion yen.

Panasonic Corporation rose 0.4% to 1,357.50 yen after the electronic products maker reported net sales in the nine-month period ending in December rose 0.7% to 5.72 trillion yen from 5.68 trillion yen a year ago period.

Net income in the period plunged 42.2% to 140.42 billion yen compared to 243 billion yen and diluted earnings per share dropped to 60.74 yen from 105.13 yen per share in the same period a year ago.

Sankyo Co., Ltd slipped 1.5% to 4,165 yen after the pinball machinery manufacturer said net sales in the nine-month period ending in December declined 15% to 113.51 billion yen from 133.58 billion yen a year ago period.

Net income in the period tumbled 69.5% to 7 billion yen compared to 22.93 billion yen and diluted earnings per share slumped to 74.78 yen from 245.31 yen per share in the same period a year ago.

The company forecasted net sales for the year to jump 8.5% to 172 billion yen but net income to plummet 36.6% to 14.2 billion yen.