Nikkei Turns Lower, Mitsubishi in Talks for a Wind Farm Project in U.K.

Hiruki Nakamura
25 Feb, 2015
New York City

Nikkei index in Tokyo edged lower from its recent 15-year high and the yen weakened. Mitsubishi Heavy is likely to win a large offshore wind farm order in the U.K. Sankyo declined after the pachinko game machine maker lowered fiscal year sales outlook.

[R]4:30 PM Tokyo – Nikkei index in Tokyo edged lower from its recent 15-year high and the yen weakened. Mitsubishi Heavy is likely to win a large offshore wind farm order in the U.K. Sankyo declined after the pachinko game machine maker lowered fiscal year sales outlook.[/R]

Stocks in Tokyo closed down but not far from the recent 15-year high and the yen weakened against the dollar and the euro.

Investors paid attention to the latest comments from the U.S. Federal Reserve Chair Janet Yellen and speculated that interest rates are likely to remain low at least in the first-half.

Yellen in her testimony to lawmakers offered an upbeat assessment of the economic recovery but also added that though the jobs market is healthier and recovering but not fully “healed.”

Yellen also said that the central bank is “patient” when it comes to interest rates and rates are likely to remain low in the near future.

The Nikkei 225 Stock Average fell 18.28 to 18,585.20 and the broader Topix index slid 0.66 to 1,507.62.

The yen traded dropped at 118.73 against one dollar.

Stocks in Review

Mitsubishi Heavy Industries Ltd rose 0.1% to 660.50 yen after the Nikkei news reported diversified manufacturer may secure an order to supply offshore wind turbines in the U.K. for about 50 billion yen or $416 million.

Planet, Inc fell 0.9% to 1,218 yen after the network service provider said net sales in the second-quarter ending in January rose 1.3% to 1.39 billion yen from 1.37 billion yen a year ago period.

Net income in the quarter increased 2.6% to 241 million yen compared to 235 million yen and earnings per share increased to 36.37 yen from 35.46 yen in the same period a year ago.

Sankyo Co., Ltd plunged 6.1% to 4,505 yen after the pachinko machine maker forecasted net sales for the fiscal 2015 ending in March to decline 15% to 145 billion yen from an earlier estimate of 172 billion yen and net income for the year to drop 41.5% to 8.30 billion yen compared to previous guidance of 14.20 billion yen.

Takeda Pharmaceutical Co Ltd slid 0.5% to 6,105 yen after the Nikkei news reported pharmaceutical company's Germany-based unit agreed to acquire ""Toplam Kalite,"" a group company of Neutec in Turkey for about $121 million.

The transaction is expected to close in the second-quarter of this year.

Welcia Holdings Co Ltd dropped 1.7% to 4.520 yen and the drug store operator launched sale of over-the-counter medicines in China through a joint venture with Bailian Group and a Shanghai-based online retailer.

The company plans to apply for a license to sell over-the-counter drugs in stores in Shanghai and in other areas with Chinese-made drugs by 2016 to generate revenues of 2 billion yen in next three years.