Nikkei Surges 1.5%, Seven & I Net Falls

Hiruki Nakamura
02 Apr, 2015
New York City

Stocks in Japan rebounded and export sensitive sectors led the gainers. Seven & I Holdings said fiscal year revenues increased 7.9% but net income declined 1.5%. Sony cut in half its stake to 5% in Olympus Corp.

[R]4:30 PM Tokyo – Stocks in Japan rebounded and export sensitive sectors led the gainers. Seven & I Holdings said fiscal year revenues increased 7.9% but net income declined 1.5%. Sony cut in half its stake to 5% in Olympus Corp.[/R]

Market indexes in Tokyo rebounded and the yen gained against the dollar after the oil and base metals prices weakened.

Iron ore price declined for the sixth day in a row and fell below $50 a ton price for the first time in six years. The ore prices have plunged more than 60% in the last two years as China engineered a slowdown in construction sector.

The Nikkei 225 Stock Average climbed 277.95 or 1.5% to 19,312.79 and the broader Topix index jumped 25.18 to 1,554.17.

The yen eased to 119.54 against a dollar.

Stocks in Review

Japan Post Holdings Co, the postal services provider agreed to acquire additional stake in Australia-based Toll Holdings Ltd, the freight and logistic company for about $6.5 billion. The news was reported by Reuters news service.

Nagaileben Co., Ltd increased 0.9% to 2,205 yen after the medical-wear maker said net sales in the first-half ending in February rose 1% to 6.84 billion yen from 6.78 billion yen in a year ago period.

Net income in the year gained 3% to 1.30 billion yen compared to 1.26 billion yen and earnings per share jumped to 38.05 yen from 36.92 yen in the same period a year ago.

Olympus Corporation declined 4.1% to 4,240 yen after the medical equipment maker said its largest shareholder Sony Corporation reduced its stake to 5.04% from 10.09%, worth about 700.9 billion yen.

Shares of Sony Corporation climbed 3.1% to 3,336 yen.

Seven & I Holdings Co., Ltd jumped 2.4% to 5,113 yen after the supermarket and convenience stores operator reported revenues in the year ending in February climbed 7.2% to 6.04 trillion yen from 5.63 trillion yen in a year ago period.

Net income in the year slipped 1.5% to 172.98 billion yen compared to 175.69 billion yen and diluted earnings per share decreased to 195.48 yen from 198.69 yen in the same period a year ago.

For the first-half the company forecasted revenues to advance 5.2% to 3.16 trillion yen and net income to surged 10.8% to 93 billion yen.

The convenience stores operator forecasted revenues for the fiscal 2016 to jump 6% to 6.40 trillion yen and net income to soared 11.6% to 193 billion yen.