4:30 PM Tokyo – Prime Minister Shinzo Abe’s party led coalition won more than two-thirds majority in the weekend Parliamentary election. The widely anticipated results strengthened the government hand to pass bolder economic reforms. J.Front Retailing and Takashimaya reported weak November sales.
Stocks in Tokyo closed lower and investors overlooked the expected win in Parliamentary election by the coalition led by Prime Minister Shinzo Abe.
Abe’s ruling coalition won more than two-thirds of 475 seats in the lower house of the Diet, in the lowest voter turnout since World War II. Abe is likely to be the longest serving prime minister in four decades if he completes his term till 2018.
Abe’s Liberal Democratic Party won 291 seats, nearly winning all the sets of 294 it won in landslide win in 2012. The coalition partner, Komeito, won 35 seats, an increase of 4 seats from the previous election two year ago.
The ruling coalition will keep its two-thirds super majority in the 475-seat house, in a low turnout. The super majority will help the ruling coalition to pass laws without the approval of upper house of the Diet.
Democratic Party of Japan made little progress, with only 57 seats compared to 73 in the previous election, despite the falling approval ratings for the government.
The Nikkei 225 Stock Average dropped 272.18 or 1.6% to 17,099.40 and the broader Topix index slumped 20.36 to 1,379.29.
The yen increased 0.4% to 118.58 against one dollar.
Stocks in Review
J.Front Retailing Co Ltd
jumped 2% to 1,436 yen after the clothing, house-wares and food retailer said department stores sales in November slid 0.2% and wholesale sales declined 6.3%.
The retailer said sales from the accessories business declined 5.8% and total household goods sales plunged 6.2%. Sales from restaurants & cafés segment dropped 2% and services business slumped 7% while sales from only total general goods climbed 5.2%.
Shoei Foods Corporation
rose 0.2% to 878 yen after the food and confectionery manufacturer reported net sales in the year ending in October soared 11.7% to 98.25 billion yen from 87.95 billion yen a year ago period.
Net income in the year plunged 19.2% to 1.68 billion yen compared to 2.07 billion yen and earnings per share declined to 86.23 yen from 106.72 yen in the same period a year ago.
Takashimaya Company, Limited
fell 0.3% to 992 yen after the department store operator said sales in November slid 0.1% and sales at four regional stores in Okayama, Gifu, Yonago and Takasaki slipped 0.3%. Sales from the Western region declined 0.6%.
Corporate segment sales plunged 11.4% and sales from the cross-media business segment tumbled 10.7%.
Top Reit, Inc
closed unchanged at 507,000 yen after the real estate developer reported net sales in the first-half ending in October jumped 2.8% to 5.79 billion yen from 5.64 billion yen a year ago period.
Net income in the period increased 2.2% to 1.96 billion yen compared to 1.91 billion yen and earnings per share rose to 11,107 yen from 11,056 yen in the same period a year ago.