Japan Indexes Halt 3-Day Rally; Sony Group and Toppan Holdings Advance After Earnings Releases

Akira Ito
14 Feb, 2025
Tokyo

Stock market indexes in Tokyo halted a three-day rally, and the yen rebounded in Friday's trading. 

The Nikkei 225 stock average declined 0.8%, and the TOPIX decreased 0.2%, but the benchmark indexes extended the weekly advance to 1%.

The Japanese yen recovered to 152.45 against the U.S. dollar on speculation that the Bank of Japan will continue its interest rate hike campaign at the next meeting. 

Two hotter-than-expected inflation reports confirmed that inflation is well anchored in the U.S., and the Federal Reserve is less likely to lower rates in the near future. 

Producer price inflation in January advanced at an annual pace of 3.5%, and consumer price inflation accelerated to 3.0% from 2.9% in December.

Both measures of inflation were ahead of market expectations, setting the stage for the U.S. policymakers to wait a little longer before considering lowering rates. 

 

Japan Indexes 

The Nikkei 225 Stock Average decreased 0.8% to 39,149.43, and the broader index, TOPIX, eased 0.2% to 2,759.21.

 

Japan Stocks 

Resonac Holdings decreased 5% to ¥3,681.0 after the specialty chemical company reported results for 2024. 

Consolidated revenue in 2024 increased to 1.38 billion yen from 1.28 billion yen, net income swung to a profit of 55.4 billion yen from a loss of 19 billion yen, and basic earnings per share were a profit of 306.6 yen compared to a loss of 104.65 yen a year ago.

Toppan Holdings soared 15.5% to ¥4,703.0 after the printing company retained its annual sales outlook. 

Net sales increased 4.1% to 432.5 billion yen, and net income advanced 1.8% to 40.4 billion yen.

The company reiterated its full-year revenue estimate of 1.72 trillion yen, net income of 80 billion yen compared to the previous estimate of 70 billion yen, and dividend per share of 48 yen.

Honda Motor advanced 2.5% to ¥1,469.50, and Nissan Motor gained 2.5% to ¥425.70 after the two companies ended their merger talks but agreed to look for ways to cooperate on projects of common interest. 

The much ballyhooed merger talks were driven by the government pressure after two companies struggled amid rising competition from Chinese electric vehicle makers.

Sony Group soared 8.6% to ¥3,705.0 after the technology and financial services company reported better-than-expected results, and the company raised its full-year sales forecast. 

Profit in the fiscal third quarter ending in December soared 37%, driven by the strength in its  gaming unit and PlayStation 5 sales increased to 9.4 million units. 

In a wider trading, Mitsubishi Materials, Japan Steel Works, and Japan Tobacco fell around 3%.

Tokyo Gas, Trend Micro, and Taiheiyo Cement advanced between 2% and 4%.