Nikkei Surges 1.9%, Toshiba Plunges 8%

Hiruki Nakamura
09 Nov, 2015
New York City

Nikkei average in Tokyo soared nearly 2% following the stronger-than-expected U.S. jobs report on Friday. Export sensitive stocks and trading companies led the gainers. Mitsui agreed to acquire 35% stake in Australia based Santos Limited. NTT Corp estimated fiscal year sales to increase 2.7%.

[R]4:30 PM Tokyo – Nikkei average in Tokyo soared nearly 2% following the stronger-than-expected U.S. jobs report on Friday. Export sensitive stocks and trading companies led the gainers. Mitsui & Company agreed to acquire 35% stake in Australia based Santos Limited. NTT Corp estimated fiscal year sales to increase 2.7%. Toshiba plunged 7.5% on weak results.[/R]

Stocks in Tokyo closed higher led by a surge in shipbuilder, insurance and trading companies and supported by a weaker yen after the Friday's U.S. jobs report.

Mitsui & Co agreed to acquire 35% stake in Australia-based Santos Ltd and Toyo Tire & Rubber net swung to a loss.

The Nikkei 225 Stock Average soared 377.14 or 1.9% to 19,642.74 and the broader Topix index jumped 27.38 to 1,590.97.

The yen weakened to 123.48 against a dollar.

Stocks in Review

Chiba Bank Ltd gained 1.5% to 880 yen after the banking services provider said net sales in the first-half ending in September rose 2.7% from a year ago to 118.06 billion yen.

Net income in the period declined 6.5% to 32.69 billion yen compared to 34.97 billion yen and diluted earnings per share dropped to 39.26 yen from 41.39 yen.

The bank forecasted net income for the year to increase 0.3% to 84.50 billion yen.

Mitsui & Co Ltd jumped 2.3% to 1,540.50 yen after the trading company agreed to acquire 35% stake of Kipper gas and condensate field business from Australia-based oil producer Santos Limited for about 45 billion yen or A$520 million.

Nippon Telegraph and Telephone Corp jumped 4.2% to 4,813 yen after the fixed and mobile services provider reported net sales in the first-half ending in September jumped 4% from a year ago to 5.59 trillion yen.

Net income in the period surged 30% to 377.32 billion yen compared to 290.33 billion yen and earnings per share slumped to 178.37 yen from 130.81 yen.

The company forecasted net sales for the year to advance 2.7% to 11.40 trillion yen and net income to soar 26.4% to 655 billion yen.

Toyo Tire & Rubber Co., Ltd increased 1.8% to 2,671 yen after the tire maker stated net sales in the third-quarter ending in September jumped 4.8% from a year ago to 300.96 billion yen.

Net in the period swung to a loss of 4.31 billion yen compared to profit of 23.51 billion in the same period a year ago.

Toshiba Corporation plunged 7.5% to 310 yen after the diversified company said net sales in the first-half ending in September declined 4.5% from a year ago to 2.97 trillion yen.

Net income in the period tumbled 29.1% to 37.3 billion yen compared to 52.6 billion yen and diluted earnings per share slumped to 8.81 yen from 12.42 yen.

For the year, the company estimated net sales to increase 6.7% to 860 billion yen and net income of 56 billion yen.