Nikkei Extends Gains; Aeon and Lawson Shine on Results

Hiruki Nakamura
01 Jul, 2015
New York City

Nikkei average in Japan and extended weekly gains and the yen hovered near its recent low. Aeon Co, the retailer, estimated first-quarter revenues and profit rose more than expected. Retailer Lawson also reported improving sales and earnings.

[R]4:30 PM Tokyo – Nikkei average in Japan and extended weekly gains and the yen hovered near its recent low. Aeon Co, the retailer, estimated first-quarter revenues and profit rose more than expected. Retailer Lawson also reported improving sales and earnings.[/R]

Market indexes in Japan closed higher on the optimism that the euro zone lenders and Greece may be able to resolve debt agreement and avert a default.

Greece missed its debt payment to the International Monetary Fund on Tuesday and has scheduled a referendum on July 5.

The I.M.F. payment is considered in “arrear” and not counted by rating agencies and financial investors as a default.

The struggling nation is also facing another deadline on July 10 and repay Treasury bond holders. Failing to do so, would be a default and rating agencies will downgrade Greek debt one more time.

The Nikkei 225 Stock Average rose 93.59 or 0.5% to 20,329.32 and the broader Topix index gained 6.01 to 1,636.41.

The yen closed at 122.69 against a dollar.

Stocks in Review

Aeon Co Ltd increased 1.6% to 1,766 yen after the Nikkei news reported general merchandise retailer forecasted revenues for the first-quarter ending in May to climb 17% to 2 trillion yen and operating profit to surge 50% to around 33 billion yen or $266 million on the rising food sales.

The retailer forecasted operating profit for the year ending February 2016 to remain at 175 billion yen, up 24% from last year.

Kuraray Co Ltd slipped 1.7% to 1,472 yen after the resins, polyvinyl and films maker estimated sales for the first-half ending in June to jump 20% to approx 65 billion yen and operating profit of about 30 billion yen higher than forecasted to 29 billion yen and were up 8% on the year.

Lawson Inc jumped 3.9% to 8,710 yen after the Nikkei daily reported convenience stores operator’s group sales for the first-quarter ending in May to soar 20% to 140 billion yen and operating profit to jump about 10% to around 19 billion yen.

Lawson is schedule to release earnings results on July 7.

Milbon Co., Ltd decreased 1% to 3,855 yen after the hair cosmetics products maker said net sales in the second-quarter ending in June climbed 7.4% to 13.07 billion yen from 12.17 billion yen in a year ago period.

Net income in the quarter soared 21.4% to 1.44 billion yen compared to 1.19 billion yen and earnings per share increased to 88.21 yen from 72.68 yen in the same period a year ago.