3-Day Rally in Nikke in Tokyo, China Stocks Raly

Hiruki Nakamura
19 May, 2015
New York City

Market indexes in Tokyo advanced for the third day in a row as corporate earnings stay ahead of expectations and higher pay out ratios of dividend. Investors bid up stocks ahead of the release of March quarter economic growth data on Wednesday.

[R]4:30 PM Tokyo – Market indexes in Tokyo advanced for the third day in a row as corporate earnings stay ahead of expectations and higher pay out ratios of dividend. Investors bid up stocks ahead of the release of March quarter economic growth data on Wednesday.[/R]

Stocks and market indexes in Japan closed higher for the third day in a row and Nikkei average jumped to the highest close since April 20.

Investors bid up stocks ahead of March quarter economic data release tomorrow and reviewed fresh new spending in China.

China’ state planning agency approved six new rail projects investment of $39 billion and also released revised framework on capital market reform and liberalizing interest rate regime.

The Nikkei 225 Stock Average jumped 165.23 or 0.8% to 20,055.50 and the broader Topix index gained 6.29 to 1,632.95.

In trading, Fast Retailing jumped 2%, Kao Corp advanced 2.9% and TDK Corp surged 2.4%.

The yen closed at 119.93 against a dollar.

Stocks in Review

Chiyoda Corporation climbed 3.1% to 1,077 yen after Anadarko Petroleum Corp selected Saipem SpA, Chiyoda and CB&I the infrastructure developers as a contractor for the initial development of an onshore liquefied natural gas park in Mozambique.

Japan Post Holdings Co., Ltd, the Nikkei news reported postal services provider’s '' banking and insurance units reported net profit in the year ending n March increased 1% to 482.6 billion yen and net profit in Japan Post Bank climbed 4% on the year to 369.4 billion yen.

Stanley Electric Co Ltd jumped 2.7% to 2,837 yen after the auto parts maker said it plans to buy back up to 0.5% of shares or 850,000 shares outstanding worth about 200 million yen.

Tokuden Co Ltd surged 11.7% to 296 yen after the welding products maker reported net sales in the year ending in March jumped 5.6% to 8.27 billion yen from 7.83 billion yen in a year ago period.

Net in the year swung to profit 272 million yen compared to a loss of 210 million yen and diluted earnings per share swung to 33.98 yen from diluted loss per share of 78.54 yen in the same period a year ago.

The insurer forecasted net sales for the year ending in March 2016 to fall 0.3% to 8.25 billion yen and net income of about 236 million yen.