Nikkei Turns Lower, Nintendo Swung to Net Profit

Hiruki Nakamura
07 May, 2015
New York City

Nikkei share average in Tokyo declined after nearly a weeklong holiday and investors reacted to weakening international markets. Monetary base in April increased 36% in Japan. Nintendo annual net sales declined 4% and net swung to profit.

[R]4:30 PM Tokyo – Nikkei share average in Tokyo declined after nearly a weeklong holiday and investors reacted to weakening international markets. Monetary base in April increased 36% in Japan. Nintendo annual net sales declined 4% and net swung to profit.[/R]

Market indexes in Tokyo declined to a one-month low in cautious trading after bond prices in Japan declined following a worldwide selloff and cautious comments from the U.S. Fed Chair Janet Yellen.

Japan’s monetary base at the end of April climbed at a record 35.6% to 305.88 trillion yen or $2.56 trillion from a year earlier, as the Bank of Japan continued to provide more liquidity.

The central bank has targeted to boost the monetary base at an annual pace of about 80 trillion yen.

The Nikkei 225 Stock Average declined 239.64 or 1.2% to 19,291.99 and the broader Topix index slumped 10.97 to 1,574.64.

The yen closed at 119.34 against a dollar.

Stocks in Review

Benesse Holdings Inc tumbled 18.3% to 3,030 yen after the education services provider forecasted operating profit for the year to tumble 54% to 13.5 billion yen.

Idemitsu Kosan Co., Ltd climbed 3.8% to 2,428 yen after the petrochemical company said net sales in the year ending in March declined 8% to 4.63 trillion yen from 5.03 trillion yen in a year ago period.

Net in the year swung to a loss of 137.96 billion yen compared to profit of 36.29 billion yen and diluted loss per shared swung to 862.50 yen from diluted earnings per share of 226.89 yen in the same period a year ago.

For the first-half ending in September, Idemitsu Kosan forecasted net sales to plunged 13.9% to 2.08 trillion yen and net income to slump 4.2% to 18 billion yen.

The company forecasted net sales for the year ending in March 2016 to drop 6% to 4.35 trillion yen and net income swung to profit of 56 billion yen.

Nintendo Co., Ltd declined 2.5% 19,740 yen after the game machines and software developer reported net sales in the year ending in March dropped 3.8% to 549.78 billion yen from 571.73 billion yen in a year ago period.

Net in the year swung to profit 41.84 billion yen compared to a loss of 23.22 billion yen and diluted earnings per shared swung to 353.49 yen from a diluted loss per share of 183.59 yen in the same period a year ago.

The company forecasted operating profits for the year ending in March 2016 to jump 3.7% to 570 billion yen and net income to decline 16.4% to 35 billion yen.

Obara Group Inc slipped 0.9% to 7,430 yen after the welding equipments maker said net sales in the second-quarter ending in March climbed 14.1% to 27.75 billion yen from 24.33 billion yen in a year ago period.

Net income in the quarter jumped 3.3% to 3.70 billion yen compared to 3.58 billion yen and earnings per shared increased to 191.57 yen from 184.34 yen in the same period a year ago.

Obara Group forecasted net sales for the year to soar 15.2% to 55 billion yen and net income to surge 16.4% to 7.20 billion yen.