Nikkei in Japan Advances, Fujifilm Offered to Buy Cellular Dynamics

Hiruki Nakamura
30 Mar, 2015
New York City

Stocks in Japan jumped and the traded near 120 level against the dollar. Industrial production declined in February by 3.4%. Fujifilm Holdings offered to acquire the U.S. based Cellular Dynamics for $307 million in cash.

[R]4:30 PM Tokyo – Stocks in Japan jumped and the traded near 120 level against the dollar. Industrial production declined in February by 3.4%. Fujifilm Holdings offered to acquire the U.S. based Cellular Dynamics for $307 million in cash.[/R]

Stocks in Japan rebounded after commodities prices eased and Bank of China hinted more economic support.

Iron ore price declined to a six-year low in Friday’s close for a delivery to a port in China as Chinese construction sector faced falling home prices and a decline in new home sale.

However, later the Bank of China suggested that it may offer additional support to prop up housing market.

On the domestic economic front, industrial production in February declined 3.4% from the previous month, a decrease for the first time in three months. Production declined 2.6% from the month in a year ago, the Ministry of Economy, Trade and Industry said.

The seasonally adjusted index in February was 98.9.

Shipments in February plunged 3.4% from the previous month and decreased 3.1% from a year ago month.

The department forecasted based on the survey of manufacturing companies, production to drop 2% in March but climb 3.6% in April.

The Nikkei 225 Stock Average jumped 125.77 or 0.6% to 19,411.40 and the broader Topix index rose 4.99 to 1,557.78.

The yen closed at 119.79 against a dollar.

Stocks in Review

Fujifilm Holdings Corp closed unchanged at 4,213.50 yen after the digital cameras, optical devices maker agreed to acquire the U.S.-based biotechnology Cellular Dynamics International, Inc for $16.5 per share or approximately $307 million in cash.

The offer represents a premium of 108% to CDI''s closing price on March 27. The transaction is expected to close during the second-quarter of this year.

Mitsubishi Heavy Industries Ltd gained 0.4% to 665.20 yen after the Nikkei news reported diversified conglomerate forecasted sales for the year ending in March 2016 to climb 8% to 4.3 trillion yen and operating profit of about 300 billion yen, 11% higher from the current estimate.

Net profit for the fiscal 2015 is estimated at 140 billion yen.

Group sales for the fiscal 2014 ending March to surge 20% to more than 4 trillion yen and operating profit is expected to increase 10% to 270 billion yen.

The company is scheduled to announce fiscal 2014 result on May 8.

Panasonic Corporation rose 0.1% to 1,578 yen after the Nikkei news reported that the company’s healthcare subsidiary plans to acquire blood-glucose meter unit from Germany-based drug-maker Bayer AG for about 100 billion yen.

Takata Corporation fell 0.4% to 1,312 yen after three class action lawsuits against the auto parts supplier were filed seeking about $1.9 billion, Merchant Law Group LLP lead partner Tony Merchant said.

The Canadian litigation involves 400,000 vehicles equipped with Takata air bags.