Nikkei Rallies 2% in Two Days; J Front and Union Tools in Focus

Hiruki Nakamura
06 Oct, 2015
New York City

Nikkei average in Tokyo closed up 1% and the yen traded above 120-mark against the U.S. dollar. J. Front Retailing said first-half sales increased 2.8% and net income more than doubled. Union Tools said third-quarter sales increased 14% and net soared 52%.

[R]4:30 PM Tokyo – Nikkei average in Tokyo closed up 1% and the yen traded above 120-mark against the U.S. dollar. J. Front Retailing said first-half sales increased 2.8% and net income more than doubled. Union Tools said third-quarter sales increased 14% and net soared 52%.[/R]

Stocks in Tokyo gained and the Nikkei average added 1% and extended rally and investors focused on the corporate earnings news.

The Nikkei 225 Stock Average gained 180.61 or 1% to 18,186.10 and the broader Topix index increased 11.92 to 1,475.84.

The yen strengthened to 120.23 against a dollar.

Stocks in Review

Ait Corporation rose 0.1% to 940 yen after the cargo delivery services provider said net sales in the second-quarter ending in August edged up 0.2% from a year ago to 10.19 billion yen.

Net income in the year jumped 13.5% to 428 million yen compared to 377 million yen and earnings per share gained to 22.41 yen from 19.73 yen.

J. Front Retailing Co Ltd edged up 0.05% to 1,994 yen after the department store operator reported net sales in the first-half ending in August jumped 2.8% from a year ago to 573.31 billion yen.

Net income in the period more than doubled to 15.01 billion yen compared to 7.80 billion yen and diluted earnings per share rose to 57.17 yen from 29.56 yen.

The company forecasted net sales for the year to increased 2.7% to 1.18 billion yen and net income to soar 27.7% to 25.50 billion yen.

Sankyo Co., Ltd gained 2.3% to 4,415 yen after the pachinko machines maker plans to buy back up to 4.70 million shares worth about 20 billion yen through end of the December.

Toray Industries Inc fell 0.8% to 1,061 yen after the diversified textile and apparel products maker’s group sales for the first-half ending in September to jump 10% to 1 trillion yen and operating profit to surge 40% to 72 billion yen.

For the year, the company forecasted operating profit to soar 21% to 150 billion yen.

Separately, the company agreed to acquire 55% stake in the Italy-based prepreg manufacturer Delta Tech SpA to expand its business in Europe.

Union Tool Co increased 1.6% to 3,035 yen after the cutting tools maker said net sales in the third-quarter ending in August soared 14% from a year ago to 16.45 billion yen.

Net income in the period surged 51.7% to 2.76 billion yen compared to 1.82 billion yen and earnings per share advanced to 147.59 yen from 92.23 yen.

The company forecasted net sales for the year of about 25.30 billion yen and net income of about 4 billion yen.