Nikkei Extends 4-Week Rally, Toshiba Details Earnings Overstatement

Hiruki Nakamura
21 Jul, 2015
New York City

Nikkei average in Tokyo extended rally and the yen eased after two weeks of strength as investors digested latest batch of earnings. Genky, the drug store retailer, said annual sales increased 9% and net soared 50%. Yasakawa Electric said quarterly revenues rose 11%.

[R]4:30 PM Tokyo – Nikkei average in Tokyo extended rally and the yen eased after two weeks of strength as investors digested latest batch of earnings. Genky, the drug store retailer, said annual sales increased 9% and net soared 50%. Yasakawa Electric said quarterly revenues rose 11%.[/R]

Nikkei average in Tokyo extended rally and the yen eased after two weeks of strength as commodities prices recovered but gold languished near its five-year low.

The Nikkei 225 Stock Average jumped 191.05 or 0.9% to 20,841.97 and the broader Topix index gained 10.94 to 1,673.88.

The yen closed at 124.29 against a dollar.

Stocks in Review

Genky Stores, Inc jumped 4% to 11,870 yen after the drugs and cosmetic products retailer reported sales in the year ending in June jumped 9% to 63.14 billion yen from 57.95 billion yen in a year ago period.

Net income in the quarter climbed 50.4% to 1.76 billion yen compared to 1.17 billion yen and earnings per share advanced to 500.37 yen from 335.03 yen in the same period a year ago.

Toshiba Corp jumped 6.1% to 399.90 yen after the diversified conglomerate said that the third-party independent investigation committee Ernst & Young ShinNihon LLC said accounting irregularities found in operating profit had overstated by 151.8 billion yen or $1.22 billion from fiscal 2008 through December 2014.

The company plans to disclose the full report today and hold a press conference and release financial results by the end of August.

Yaskawa Electric Corp gained 1.7% to 1,571 yen after the electrical equipment maker reported revenues in the first-quarter ending in June climbed 11% to 101.05 billion yen from 91.02 billion yen in a year ago period.

Net income in the quarter soared 29.3% to 5.78 billion yen compared to 4.47 billion yen and diluted earnings per share increased to 21.81 yen from 16.87 yen in the same period a year ago.

The electrical equipment maker forecasted revenues for the second-quarter ending in September to jump 7.3% to 208 billion yen and net income to surge 14.5% to 10 billion yen.

For the year, the company forecasted revenues for the year ending in March 2016 to increase 8.7% to 435 billion yen and net income gain 3.3% to 24 billion.