Japan Indexes Edged Higher After Positive Results from Softbank and Fujikura, Machine Tool Orders Advanced

Akira Ito
12 Feb, 2025
Tokyo

Investors bid up stocks in Tokyo trading following positive earnings from leading corporations. 

The Nikkei 225 increased 0.5%, and the broader TOPIX edged up a fraction after investors returned from a holiday. 

Market sentiment was positive after Fujikura and SoftBank reported financial results. 

The yen weakened to 153.75 against the U.S. dollar after Bank of Japan Governor Kazuo Ueda did not clarify the future rate path in a presentation to lawmakers. 

Investors remained cautious amid rising trade tensions with the U.S., and Trade Minister Yoji Muto formally requested exemption from the latest 25% tariffs on steel and aluminum products scheduled to go into effect on March 4.

On the economic front, machine tool orders increased 4.7% to 116.2 billion yen in January, slowing from an 11.2% increase in December. 

Orders advanced for the fourth consecutive month, as foreign orders increased 4.7% to 84.2 billion yen and domestic orders gained 4.5% to 31.99 billion yen.

The monthly data were released by the Japan Machine Tool Builders' Association on Wednesday. 

 

Japan Indexes and Stocks

The Nikkei 225 Stock Average increased 0.5% to 38,963.70, and the broader TOPIX advanced a fraction to 2,733.33. 

Fujikura Ltd soared 10.4% to ¥7,366.0 after the electric equipment company reported strong financial results for the nine-month period ending in December. 

Revenue increased 18.7% to 711 billion yen, ordinary profit soared 85.8% to 95.8 billion yen, and diluted earnings per share rose to 214.20 yen from 129.79 yen a year ago. 

For the third quarter, sales increased 27% to 267.5 billion yen, and net income advanced to 30.4 billion yen from 10.6 billion yen a year ago. 

The company raised its full-year revenue forecast to 940 billion yen from 880 billion yen and net income to 74 billion yen compared to 62 billion yen estimated earlier, respectively.

SoftBank advanced 3.8% to ¥9,856.0 after the company released its nine-month financial results.

Revenue in the nine-month period ending in December increased 6% to 5.3 trillion yen, net income swung to a profit of 1.05 trillion yen from a loss of 119.7 billion yen, and diluted earnings per share advanced to an income of 425.30 yen compared to a loss of 328.78 yen a year ago.

The results included investment gains of 2.2 trillion yen compared to a loss of 538.9 billion yen in the previous year's period.