Nikkei Drops 1.6% on China Worries

Hiruki Nakamura
14 Sep, 2015
New York City

Nikkei average in Tokyo dropped 1.6% following Asian markets decline after China reported weakening factory output and fixed-asset investments data over the weekend. Shoei Foods, the dairy and confectionary maker said quarterly sales increased 9.1%.

[R]4:30 PM Tokyo – Nikkei average in Tokyo dropped 1.6% following Asian markets decline after China reported weakening factory output and fixed-asset investments data over the weekend. Shoei Foods, the dairy and confectionary maker said quarterly sales increased 9.1%.[/R]

Markets in Tokyo declined on the first trading day of this following weaker than expected economic data from China. Asian markets also eased after Shanghai index dropped more than 3%.

China said factory output in August rose at less than expected 6.1% and the pace of fixed-asset investment growth declined to 11%, still healthy compared to most developed economies.

The latest economic data over the weekend offered yet another evidence that China may not be able to deliver on its annual economic growth target of 7%.

The Nikkei 225 Stock Average slumped 298.52 or 1.6% to 17,965.70 and the broader Topix index dropped 17.82 or 1.2% to 1,462.41.

The yen strengthened to 120.26 against a dollar.

Stocks in Review

Ardepro Co Ltd jumped 2.9% to 108 yen after the real estate developer said net sales in the year ending in July soared 12.4% from a year ago to 11.69 billion yen from 10.40 billion yen.

Net income in the year jumped 13.3% to 1.85 billion yen compared to 1.63 million yen and diluted earnings per share rose 7.62 yen from 7.11 yen in the same period a year ago.

For the year, Ardepro estimated net sales to increase 88.2% to 22 billion yen and net income to jump 62.3% to 3 billion yen.

Comforia Residential Investment Corp slipped 1.2% to 200,300 yen after the real estate company stated net sales in the year ending in July tumbled 20.7% from a year ago to 4.95 billion yen from 4.10 billion yen.

Net loss in the year widened to 2.09 billion yen compared to 1.73 million yen and diluted loss per share increased 4,408 yen from 4,296 yen in the same period a year ago.

Shoei Foods Corporation gained 1.5% to 1,183 yen after the dairy and confectionery products maker reported net sales in the third-quarter ending in July jumped 9.1% from a year ago to 81.1 billion yen from 74.4 billion yen.

Net income in the year surged 79.6% to 2.32 billion yen compared to 1.29 billion yen and diluted earnings per share increased 119.42 yen from 66.50 yen in the same period a year ago.

The company forecasted net sales for the fourth-quarter ending in October to soar 7.9% to 106 billion yen and net income to jump 52% to 2.55 billion yen.

Toshiba Corporation slumped 2.1% to 314.80 yen after the diversified manufacturer reported net sales in the first-quarter ending in June dropped 4.2% from a year ago to 1.35 trillion yen from 1.41 trillion yen.

Net in the quarter swung to a loss of 12.3 billion yen compared to 16.7 billion yen and diluted loss per share swung to 2.90 yen from diluted earnings per share of 3.95 yen in the same period a year ago.

Toshiba said profit in the electronic devices and components business declined 13% to 35.6 billion yen and personal computers, televisions and appliances reported operating loss of 20.7 billion yen.

In addition, the Tokyo Stock exchange fined the conglomerate 91 million yen for accounting irregularities, The Stock Exchange said today.