Nikkei Plunges 2.7%, Honda, NTT DoCoMo Drop

Hiruki Nakamura
30 Apr, 2015
New York City

Nikkei in Tokyo plunged 2.7% after two-day holiday and the U.S. economy nearly stalled in the first-quarter. Honda dropped 7% after the automaker estimated flat earnings in the current fiscal quarter. NTT DoCoMo declined 6% on earnings outlook.

[R]4:30 PM Tokyo – Nikkei in Tokyo plunged 2.7% after two-day holiday and the U.S. economy nearly stalled in the first-quarter. Honda dropped 7% after the automaker estimated flat earnings in the current fiscal quarter. NTT DoCoMo declined 6% on earnings outlook.[/R]

Market indexes in Tokyo plunged in short trading week after the U.S. economy nearly stalled in the first-quarter and Honda estimated flat earnings in the current fiscal year.

Japanese stocks have surged on the back of strong monetary stimulus from the Bank of Japan and foreign investors are increasing exposure to the euro zone on the monetary stimulus from the European Central Bank.

The Nikkei 225 Stock Average dropped 538.94 or 2.7% to 19,520.01 and the broader Topix index dropped 34.64 or 2.1% to 1,592.79.

For the week, Nikkei slipped 0.7% and for the month increased 0.6%.

The yen closed at 118.94 against a dollar.

Stocks in Review

Asahi Group Holdings Ltd dropped 2.3% to 3,855.50 yen after the alcoholic beverages maker reported net sales in the first-quarter ending in March slid 0.2% to 374.19 billion yen from 375.05 billion yen in a year ago period.

Net income in the year surged 410.8% to 13.33 billion yen compared to 2.61 billion yen and diluted earnings per share climbed to 28.78 yen from 5.35 yen in the same period a year ago.

The company forecasted revenues for the year to increase 3.6% to 1.85 trillion yen and net income to climb 8.5% to 75 billion.

Fujitsu Limited fell 0.4% to 793.20 yen after the electric appliances maker said revenues in the year ending in March slid 10.2% to 4.75 trillion yen from 4.76 trillion yen in a year ago period.

Net income in the year climbed 8% to 140 billion yen compared to 113.2 billion yen and diluted earnings per share rose to 67.64 yen from 54.71 yen in the same period a year ago.

The company forecasted revenues for the year to jump 2% to 4.85 trillion yen and net income to decline 28.6% to 100 billion.

Japan Tobacco Inc plunged 5.1% to 4,211 yen after the tobacco products maker reported net sales in the first-quarter ending in March fell 0.2% to 554.89 billion yen from 556.45 billion yen in a year ago period.

Net income in the year slipped 1.9% to 104.19 billion yen compared to 106.18 billion yen and diluted earnings per share slid to 57.56 yen from 58.39 yen in the same period a year ago.

Separately, the company agreed to acquire the U.S.-based Logic Technology Development LLC, a maker of e-cigarette, and deal terms were not disclosed.

Japan Airlines Co Ltd fell 0.2% to 4,000 yen after the airline said revenues in the year ending in March jumped 2.7% to 1.34 trillion yen from 1.31 trillion yen in a year ago period.

Net income in the year declined 10.3% to 149.04 billion yen compared to 166.25 billion yen and earnings per share slumped to 411.06 yen from 458.45 yen in the same period a year ago.

Meanwhile, rival ANA Holding Ltd said revenue for the year ending in March climbed 9.1% to 1.71 trillion yen and net income surged 107.8% to 39.2 billion yen compared to a year ago period.

Kirin Holdings Co Ltd slipped 1.5% to 1,586 yen after the alcohol beverages and soft drinks maker reported net sales in the first-quarter ending in March slumped 2.5% to 515.30 billion yen from 528.73 billion yen in a year ago period.

Net income in the year climbed 20.5% to 13.38 billion yen compared to 11.10 billion yen and diluted earnings per share jumped to 14.66 yen from 11.90 yen in the same period a year ago.

Nitto Denko Corporation dropped 2.4% to 7,697 yen after the bonding and protective materials maker reported net sales in the year ending in March soared 10.1% to 825.24 billion yen from 749.50 billion yen in a year ago period.

Net income in the year surged 50.1% to 77.88 billion yen compared to 51.89 billion yen and diluted earnings per share increased to 470.85 yen from 313.92 yen in the same period a year ago.

The company forecasted fiscal 2016 revenues to jump 5.4% to 870 billion yen and net income to climb 13.7% to 88.70 billion.

Yamaha Corporation declined 3.8% to 2,179 yen after the musical instruments maker said net sales in the year ending in March jumped 5.3% to 432.18 billion yen from 410.30 trillion yen in a year ago period.

Net income in the year climbed 8.9% to 24.93 billion yen compared to 22.90 billion yen and earnings per share gained to 128.75 yen from 118.26 yen in the same period a year ago.

Yamaha estimated net sales for the first-half ending in September to jump 3.7% to 214 billion yen and net income to soar 11.2% to 12 billion yen.

The musical instruments maker forecasted fiscal 2016 revenues to edge up 0.7% to 435 billion yen and net income to increase 2.3% to 25.50 billion yen.