Nikke in Tokyo Down on Quarterly Adjustments

Hiruki Nakamura
31 Mar, 2015
New York City

On the final day of the quarter, investors in Japan sold positions to adjust portfolio allocation and the weak auto production report weighed on the market sentiment. Passenger car production declined for the eighth month in a row in February.

[R]4:30 PM Tokyo – On the final day of the quarter, investors in Japan sold positions to adjust portfolio allocation and the weak auto production report weighed on the market sentiment. Passenger car production declined for the eighth month in a row in February.[/R]

Stocks in Tokyo struggled and the Nikkei index declined more than 1% after the latest automobile production report.

The passenger car production declined for the eighth month in a row and the expectations of weak economic growth resurfaced after the report.

Automobile production in February declined 5.3% to 817,390 units compared to 863,452 units a year ago month. Motorcycle production in February plunged 11.2% to 50,079 units from 56,423 units for the same month a year ago, the Japan Automobile Manufacturers Association said today.

Production of passenger cars declined 6.7% to 692,071 units, eighth monthly decrease in a row. Total production of trucks in the month climbed 3.4% to 113,807 units from a year ago month.

On the sales front, passenger cars sales in February plummeted 15.8% to 413,192 units and trucks sales dropped 7.7% to 67,920 units.

Domestic demand in the month plunged 14.7% to 482,103 units.

The department added automobile export in the month fell 0.3% to 365,855 units compared to 366,779 units a year ago period. Export of passenger cars fell 0.3% to 313,100 units and truck export declined 3.6% to 41,414 units.

The Nikkei 225 Stock Average declined 204.41 or 1.1% to 19,206.99 and the broader Topix index dropped 14.66 to 1,543.11.

For the month of March, Nikkei 225 climbed 2.1% and for the first-quarter of 2015 the index surged 10.1%.

The yen weakened to 119.99 against a dollar.

Stocks in Review

Shimamura Co., Ltd plunged 7.1% to 11,120 yen after the apparel retailer reported net sales in the year ending in February jumped 2% to 511.89 billion yen from 501.90 billion yen in a year ago period.

Net income in the year declined 12.4% to 23.29 billion yen compared to 26.58 billion yen and earnings per share dropped to 633.48 yen from 723.04 yen in the same period a year ago.

Tri-Stage Inc edged up 0.07% to 1,413 yen after the advertisement services provider stated revenues in the year ending in February tumbled 10.7% to 32.19 billion yen from 36.02 billion yen in a year ago period.

Net income in the year surged 42.3% to 533 million yen compared to 374 million yen and diluted earnings per share climbed to 71.34 yen from 50.18 yen in the same period a year ago.

Usen Corporation gained 1.1% to 360 yen after the communication technology services provider said net sales in the second-quarter ending in March rose 0.7% to 34.62 billion yen from 34.49 billion yen in a year ago period.

Net income in the year increased 0.7% to 4.02 billion yen compared to 4.05 billion yen and earnings per share jumped to 52.49 yen from 25.33 yen in the same period a year ago.

Union Tool Co increased 1.8% to 3,430 yen after the machine parts maker stated net sales in the first-quarter ending in February soared 17.6% to 5.45 billion yen from 4.63 billion yen in a year ago period.

Net income in the year doubled to 1.01 billion yen compared to 504 million yen and earnings per share jumped to 52.49 yen from 25.33 yen in the same period a year ago.