Japan Stock Rally Extends to Third Day; Marubeni, Nippon Electric Glass, Renesas Electronics In Focus

Akira Ito
06 Feb, 2025
Tokyo

Stock market indexes in Tokyo advanced for the third day in a row, tracking gains in tech stocks on Wall Street. 

The Nikkei 225 stock average and the TOPIX advanced between 0.3% and 0.6% as investors shifted their attention away from tariff threats to corporate earnings. 

Investors reacted to the latest batch of earnings, including results from Toyota Motor, Renesas Electronics, Tokyo Electron, Nippon Electric Glass, Nomura Holdings, and Yamaha. 

In addition, Honda and Nissan were in focus amid reports that the two companies may walk away from the merger deal after Honda proposed to acquire Nissan and operate as one of its subsidiaries. 

Despite the recent gains in benchmark indexes, investors were cautious amid worries of possible new trade restrictions in the U.S., after the newly appointed presidential administration slapped additional 10% tariffs on goods shipped from China and Hong Kong. 

 

Japan Stocks and Indexes 

The Nikkei 225 Stock Average increased 0.6% to 39,066.53, and the TOPIX advanced 0.3% to 2,752.20. 

Honda Motor declined 4% to ¥1,440.0, and Nissan Motor jumped 7% to ¥415.10 after the two companies ended their merger talks, and

Honda instead proposed to acquire Nissan.

Renesas Electronics jumped 12.6% to ¥2,305.50 after the advanced semiconductor chipmaker reported full-year 2024 results. 

Consolidated revenue decreased 8.2% to 1.4 trillion yen, and profit plunged 35% to 219.4 billion yen from 337.3 billion yen.

This was mainly attributable to a decrease in revenue from the industrial, infrastructure, and IoT business driven by weakening demand, although revenue increase in the automotive business was driven by weakening yen and channel inventory expansion.

Nippon Electric Glass soared 9% to ¥3,702.0 after the company announced a stock repurchase plan. 

The company said it plans to acquire 7 million common shares, or 8.7% of total outstanding shares, for about 20 billion yen, between February 6 and December 23, 2025.

Marubeni Corp. increased 4% to ¥2,399.50, and the diversified conglomerate reported better-than-expected results in the fiscal third quarter ending in December. 

Revenue increased 9% to 1.83 trillion yen, and net income advanced 56% to 187.06 billion yen.

The company raised its estimate for annual dividends to 95 yen from 90 yen and the full-year net income estimate to 500 billion yen from the previous estimate of 480 billion yen.

The company announced a stock buyback program worth up to 30 billion yen or 30 million shares between February 6 and June 30.