Nikkei at 14-Year High and Banks Lead Market Advance

Hiruki Nakamura
19 Feb, 2015
New York City

The benchmark index in Tokyo closed at a high not seen since 2000 after a catch up rally in large banks powered the latest market advance. Trend Micro soared 6% after the anti-virus software maker estimated higher than expected profit.

[R]4:30 PM Tokyo – The benchmark index in Tokyo closed at a high not seen since 2000 after a catch up rally in large banks powered the latest market advance. Trend Micro soared 6% after the anti-virus software maker estimated higher than expected profit.[/R]

Stocks in Tokyo continued to advance higher and trade deficit in January narrowed after oil prices declined and exports surged at the fastest pace in the month in more than a year.

Large banks led the gainers and Sony advanced after the company forecasted increase in operating earnings and announced a plan to separate its sound and video business.

Trade deficit in January narrowed 57.9% to 1.18 trillion yen from 2.780 trillion yen a year ago month, the Ministry of Finance said today.

The department added exports in the month climbed 17% to 6.14 trillion yen from 5.25 trillion yen a year ago month while import plunged 9% to 7.32 trillion yen compared to 8.05 trillion yen in January 2014.

The Nikkei 225 Stock Average gained 65.62 or 0.4% to 18,264.79 and the broader Topix index rose to 12.26 to 1,494.93.

The yen weakened to 118.74 against one dollar.

Stocks in Review

Imagica Robot Holdings Inc surged 18.9% to 628 yen after the video for television service provider and Cool Japan Fund Inc.- the government-backed promoter and Sumitomo Corp agreed to acquire 50.1% stake in the U.S.-based movie translation company SDI Media Group Inc for 8.94 billion yen or $160 million.

Sony Corp gained 1.6% to 3,227 yen announced that it would spin off its video and sound business unit and establish a wholly owned subsidiary in October.

Senko Co Ltd jumped 2.2% to 702 yen after the transportation and logistic company reported net sales in the nine-month ending in December soared 22.3% to 295.28 billion yen from 241.35 billion yen a year ago period.

Net income in the period increased 1.9% to 5.63 billion yen compared to 5.53 billion yen and diluted earnings per share rose to 37.54 yen from 36.89 yen in the same period a year ago.

The company forecasted annual net sales to surge 19.8% to 400 billion yen and net income to jump 16.9% to 7.60 billion yen.

Trend Micro Inc soared 6.6% to 3,625 yen after the security software provider forecasted net income for the year ending in December of about 22.6 billion yen and year-end cash dividend per share of 116 yen.