Nikkei Crosses 19,000, Record High Short-Selling Ratio in Tokyo

Hiruki Nakamura
28 Aug, 2015
New York City

Market indexes in Japan soared following a similar rebound in overnight trading in New York after the latest data offered a brighter view of the U.S. economic growth. However, caution prevailed and short selling ratio in Tokyo shot up to a record high of 39.8%.

[R]4:30 PM Tokyo – Market indexes in Japan soared following a similar rebound in overnight trading in New York after the latest data offered a brighter view of the U.S. economic growth. However, caution prevailed and short selling ratio in Tokyo shot up to a record high of 39.8%.[/R]

Nikkei average in Tokyo jumped following brighter view on the U.S. economy and export-focused companies led the gainers. Also, Shanghai market index jumped in Asia-wide rebound, helping the trading sentiment.

Market indexes opened sharply higher in Tokyo after the U.S. economic growth in the second quarter was revised higher to 3.7% from 2.3% largely on the higher buildup in inventories.

Yesterday, the government said retail sales in July rose 1.6% followed by 1% increase in June, according to the Ministry of Economy, Trade and Industry.

The consumer price index in July increased 0.2% after decreasing 0.4% in June, the Ministry of Internal Affairs and Communications said.

Separately, the ministry said seasonally adjusted unemployment rate in July was unchanged at 3.3% compared to previous month.

For the year, the number of unemployed in July declined 260,000 to 2.22 million, a decrease of 10.5% from a year ago month.

In another report, the same ministry reported average household expense in July dropped 0.2% to 280,471 yen, followed by a 2% decline in June.

The average monthly income per household soared 5.4% to 587,156 yen and average consumption expenditures per household increased 0.7% to 314,788 yen.

The Nikkei 225 Stock Average soared 561.88 or 3% to 19,136.32 and the broader Topix index jumped 49.39 or 3.3% to 1,549.80.

For the week, Nikkei 225 slipped 1.6%

The yen strengthened to 120.90 against a dollar.

Stocks in Review

DyDo Drinco, Inc jumped 3.6% to 5,190 yen after the soft drinks and beverages maker reported net sales in the first-half ending in July slipped 1.8% from a year ago to 74.38 billion yen from 75.76 billion yen.

Net income in the period declined 33.6% to 779 million yen compared to 1.17 billion yen and earnings per share dropped to 47.08 yen from 70.89 yen in the same period a year ago.

For the year, the beverages maker forecasted net sales to increase 1% to 151 billion yen and net income to surge 16.3% to 2.70 billion yen.

Separately, the company agreed to acquire 49% stake in the Malaysia-based Mamee Double Decker (M) Sdn Bhd''s beverage business in September.

FamilyMart Co Ltd increased 3.3% to 5,610 yen after the convenience store operator and UNY Group Holdings Co. postponed the planned merger and said two companies may take another year to decide.

Itochu Corp surged 7.9% to 1,481.50 yen after the Nikkei News said trading company’s pretax profit for the year is expected to soar 10% to 330 billion yen.

Rakuten Inc soared 4.3% to 1,733.50 yen after the Nikkei newspaper reported the online shopping mall operator plans to enter in the retail electricity business.

The company plans to collaborate with Marubeni Corp. to sell electricity at a discounted rates to small and medium-size companies.