Japan's First-Quarter GDP Expands 2.4%, Nikkei at 15-Year Peak

Hiruki Nakamura
20 May, 2015
New York City

Japan reported better than expected first-quarter economic growth of 0.6% and the U.S. dollar rose to a two-month high. On an annual basis, the GDP increased 2.4%. Nikkei average jumped to a 15-year high. Next Co, the online real estate information provider said annual sales jumped 42%.

[R]4:30 PM Tokyo – Japan reported better than expected first-quarter economic growth of 0.6% and the U.S. dollar rose to a two-month high. On an annual basis, the GDP increased 2.4%. Nikkei average jumped to a 15-year high. Next Co, the online real estate information provider said annual sales jumped 42%.[/R]

Market averages in Japan closed higher and the Nikkei 225 average jumped to a 15-year high after the government reported better-than-expected first-quarter economic growth.

The economy expanded at a faster pace but components in the gross domestic product showed weakness and raised prospect of lack sustainability in the expansion.

In a preliminary reading gross domestic product in first-quarter jumped 0.6% from the downwardly revised 0.3% rate of growth in the fourth-quarter, the Cabinet Office said.

The government added on a yearly basis, first-quarter GDP increased 2.4% from the downwardly revised 1.5% increase in the previous quarter.

The Nikkei 225 Stock Average jumped 170.18 or 0.8% to 20,196.56 and the broader Topix index gained 10.07 to 1,643.40.

The yen closed at 120.98 against a dollar.

Stocks in Review

Fancl Corporation gained 0.8% to 1,441 yen after the cosmetics and nutritional supplements maker said total sales in April soared 30.3% to 7.30 billion yen from 5.60 billion yen.

Sales from Fancl cosmetics segment surged 25.8% to 3.62 billion yen but sales in the Attenir cosmetics business declined 4.1% to 522 million yen and overall sales in the cosmetics business climbed 25.3% to 4.36 billion yen.

The company said sales in the nutritional supplements business jumped 50.4% to 2.40 billion yen and sales in other businesses increased 2.4% to 536 million.

Japan Real Estate Investment Corporation rose 1.4% to 573,000 yen after the real estate developer reported revenues in the second-half ending in March jumped 2% to 28.3 billion yen from 27.8 billion yen in a year ago period.

Net income in the period rose 0.5% to 9.62 billion yen compared to 9.57 million yen and earnings per share edged up to 7,686 yen from 7,683 yen in the same period a year ago.

The real estate developer forecasted net sales for the year ending in March 2016 to fall 0.3% to 29.72 billion yen and net income to increase to 10.4 billion yen.

Next Co., Ltd climbed 3.9% to 1,369 yen after the online real estate information provider said total sales in April climbed 41.8% to 1.82 billion yen and revenues from rental and real estate trade soared 26% to 885.5 million yen from a year ago month.

Sales from domestic real estate information services segment climbed 19.5% to 1.38 billion yen and revenues form overseas services surged 2951.8% to 307.9 million yen from 10.1 million yen.

Toppan Forms Co., Ltd increased 1.2% to 1,592 yen after the Nikkei news reported printing services provider plans to invest 10 billion yen in three years through fiscal 2017 in acquiring its business in Southeast Asia.