Asian and Japanese Markets Rebound, Sony to Raise $3.6 B

Hiruki Nakamura
30 Jun, 2015
New York City

Market indexes in Asia and in Japan traded higher on the hopes that the last minute effort to avoid Greek debt default may lead to an accord. European Central Bank took steps to prevent the fast changing crisis from spreading to other nations in the euro zone. Sony announced a $3.6 billion offering.

[R]4:30 PM Tokyo – Market indexes in Asia and in Japan traded higher on the hopes that the last minute effort to avoid Greek debt default may lead to an accord. European Central Bank took steps to prevent the fast changing crisis from spreading to other nations in the euro zone. Sony announced a $3.6 billion offering plan.[/R]

Market indexes in Japan and in Asia jumped on the optimism that Greece and lenders may talk one more time to avert a default.

However, the prospect of any accord are slim as Prime Minister Alexis Tsipras is looking for a referendum in the first week in July.

Tensions in the euro zone remained high and the European Central Bank took steps to avert the contagion from spreading to other struggling economies of Portugal, Ireland and Spain.

The Nikkei 225 Stock Average gained 125.78 or 0.6% to 20,235.73 and the broader Topix index rose 5.58 to 1,630.40.

For the month, Nikkei 225 fell 1.6% but for the quarter jumped 4.2% and for the six-month soared 15.6%.

In the last twelve months, the Nikkei 225 surged 34.1%.

The yen closed at 122.76 against a dollar.

Stocks in Review

Sony Corporation plunged 8.3% to 3,461.50 yen after the electronics maker plans to sell up to 92 million new shares and convertible bonds to raise about 440 billion yen or $3.6 billion in Japan and overseas to strengthen production of image sensors for smart-phones and other devices.

Sony said 32 million shares will be issued in domestic market and 55.2 million shares will be placed in international markets for as much as 321.5 billion yen and bonds worth 120 billion yen will be placed in Japan only.

The stock offering will starts from August 17 and the exact price will be declare in the nearest date.

Sony also plans to use proceeds from the bond issue to repay maturing debt.

Suzuki Motor Corp jumped 2.7% to 4,135 yen after the auto maker announced net sales by fiscal 2019 to climb to 3.70 trillion yen under 5-year mid-term management plan and forecasted operating profit to increase by 7% from fiscal 2015.

Suzuki also estimated that total automobile sales in fiscal 2019 to reach 3.40 trillion yen and total motorcycle sales to reach approx 2 trillion yen.

The company said research and development expenses by 2019 of around 200 billion yen and capital expenditures for next five-year of about 1 trillion yen.

Star Micronics Co., Ltd increased 1.3% to 2,088 yen after the machine tools and precision parts maker reported net sales in the first-quarter ending in May soared 18.2% to 10.34 billion yen from 10.44 billion yen in a year ago period.

Net income in the quarter jumped 21.7% to 797 million yen compared to 655 million yen and diluted earnings per share increased to 18.82 yen from 15.54 yen.

Union Tool Co gained 0.5% to 3,935 yen after the cutting tools manufacturer said revenues in the second-quarter ending in May climbed 16% to 10.94 billion yen from 9.43 billion yen in a year ago period.

Net income in the quarter surged 77.6% to 2.10 billion yen compared to 1.18 billion yen and earnings per share increased to 109.21 yen from 59.57 yen.

The company forecasted revenues for the year of about 25 billion yen and net income of 4 billion yen.