Japan's GDP in Second Quarter Shrinks 1.6%

Hiruki Nakamura
17 Aug, 2015
New York City

Japan

[R]4:30 PM Tokyo – Japan’s gross domestic product in the second-quarter decreased 1.6% followed by revised 1.1% increase in the first-quarter. Digital Garage soared 7% after net surged 79%. Sojitz Corp agreed to acquire solar plant in Peru.[/R]

Nikkei average in Tokyo closed higher in thin trading and commodities traded sideways as investors digested another batch of earnings.

In the preliminary report, Japan’s gross domestic product in the second-quarter declined 1.6% followed by the upwardly revised 1.1% increase in first-quarter and 1.9% decrease in a year ago period, the Cabinet Office said.

The Nikkei 225 Stock Average gained 100.81 or 0.5% to 20,620.26 and the broader Topix index increased 8.41 to 1,672.87.

The yen eased to 124.53 against a dollar.

Stocks in Review

Digital Garage, Inc soared 6.9% to 1,932 yen after the information technology provider said net sales in the year ending in June soared 12.8% to 38.09 billion yen from 33.75 billion yen in a year ago period.

Net income in the period surged 78.5% to 5.08 billion yen compared to 2.85 billion yen and diluted earnings per share increased to 108.11 yen from 60.66 yen in the same period a year ago.

The company forecasted net sales in the year to increase 1.4% to 358 billion yen and net income to soar 28.5% to 4.75 billion yen.

Japan Excellent, Inc fell 0.8% to 138,200 yen after the real estate developer reported net sales in the first-half ending in June jumped 4.3% to 10.12 billion yen from 9.70 billion yen in a year ago period.

Net income in the period rose 2% to 3.10 billion yen compared to 3.04 billion yen in the same period a year ago.

Sojitz Corp close unchanged at 273 yen after the trading company agreed to acquire 49% stake in Peru-based domestic mega-solar power plants operator T-Solar Global SA, a unit of Grupo Isolux Corsan SA for up to 2 billion yen.

Takashimaya Company, Limited gained 0.8% to 1,152 yen after the department store operator said sales in July soared 6.9% and sales at four regional stores in Okayama, Gifu, Yonago and Takasaki advanced 6.8%.

Sales in the Western region surged 9.8% while sales in the Eastern region rose 1.9% but total sales in the month increased 4.9%.

Corporate segment sales edged up 1.6% and sales from the cross-media business segment soared 14.6%.

Tokyu Corporation increased 1.6% to 958 yen after the transportation services provider completed share buyback of up to 15 million worth about 10 billion yen between May 14 and August 14.