Nikkei Rebounds 4%, Asian Markets Slide on Volatile Shanghai

Hiruki Nakamura
26 Aug, 2015
New York City

Nikkei average rebounded after a week of sustained selling following three four days of selling but volatility in Shanghai continued to drive the stock market trading sentiment around the world. The yen gained but crude oil drifted lower to a new six-year low.

[R]4:30 PM Tokyo – Nikkei average rebounded after a week of sustained selling following three four days of selling but volatility in Shanghai continued to drive the stock market trading sentiment around the world. The yen gained but crude oil drifted lower to a new six-year low.[/R]

Nikkei average in Tokyo jumped following after four days of decline in tentative trading and many investors stayed on the side lines.

The Nikkei 225 Stock Average soared 570.13 or 3.2% to 18,376.83 and the broader Topix index jumped 46.32 or 3.2% to 1,478.97.

The yen strengthened to 119.41 against a dollar.

Stocks in Review

Daiichi Sankyo Company Limited gained 1.1% to 2,220 yen after the pharmaceutical company plans to buy back up to 28 million shares, representing 3.98% of issued shares worth about 50 billion yen before the market close on August 31.

Daiwa House Industry Co Ltd increased 1.9% to 2,777.50 yen after the construction company plans to buy and develop rental real estate worth about 150 billion yen worth over next three years.

The company also plans to start a 31 story high-rise with a total of 373 units close to central business district in Chicago, Illinois.

Invincible Investment Corporation fell 0.3% to 63,000 yen after the real estate developer reported net sales in the year ending in June jumped 7.9% to 4.97 billion yen from 4.61 billion yen in a year ago period.

Net income in the period soared 17.2% to 2.29 billion yen compared to 1.96 billion yen and diluted earnings per share increased to 860 yen from 762 yen in the same period a year ago.

For the year, the company forecasted net sales to surge 32.7% to 6.60 billion yen and net income to advance 10.1% to 2.53 billion yen.

Nippon Life Insurance Co Ltd intends to acquire 80% stake in smaller rival Mitsui Life Insurance Co for 400 billion yen or $3.34 billion from major stockholders including Sumitomo Mitsui Banking Corp.

Recruit Holdings Co Ltd soared 5.9% to 3,690 yen after the recruitment services provider today signed an agreement to split its domestic subsidiary RGIP LLC, a corporate venture capital company, from October 1 with a total equity of about 4.56 billion yen.