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Market Update

China GDP Data Trims Nikkei Losses, Tokyo Electric to Raise $2.8 B

Author: Hiruki Nakamura
Last Update: 1:33 PM ET October 19 2015

4:30 PM Tokyo – Nikkei average in Tokyo trimmed losses after China reported slightly better than expected third-quarter economic growth of 6.9%. Tokyo Electric Power rose after a report suggested that the company plans to raise $2.8 billion in bonds in the fiscal 2016.

Stocks and market indexes slipped on Monday after China’s economic growth ahead of expectations.

Nervous investors sold China-related stocks in early trading and indexes trimmed losses after China reported third-quarter economic growth of 6.9%, ahead of a slowdown to 6.8% that many economists had anticipated.

The economic growth data was in focus after Premier Li in recent comments had suggested that China may face difficulty in achieving 7% economic growth.

The Nikkei 225 Stock Average slipped 160.57 or 0.9% to 18,131.23 and the broader Topix index decreased 11.09 to 1,494.75.

The yen strengthened to 119.44 against a dollar.

Stocks in Review

JAFCO Co., Ltd declined 5.8% to 4,765 yen after the private equity investment company reported net sales in the first-half ending in September jumped 3.6% from a year ago to 24.61 billion yen.

Net income in the period slumped 8.7% to 11.61 billion yen compared to 12.71 billion yen and earnings per share decreased to 261.59 yen from 286.53 yen.

The company forecasted net sales for the year to soar 7.3% to 198 billion yen and net income of about 6.80 billion yen.

Dentsu Inc slipped 1.4% to 6,500 yen after the advertising and marketing services provider agreed to acquire 90% stake in Mumbai-based Fountainhead Entertainment Pvt. Ltd.

Japan Post Bank Co, after the banking and postal services provider set the price for its initial public offering at 1,450 yen per share.

Separately, Japan Post Insurance Co set its IPO price at 2,200 yen after initially targeting a range between 1,900 yen and 2,200 yen.

Japan Post Holdings, the government controlled mail and parcel services operator is scheduled to price its initial public offering on October 26.

NSK Ltd dropped 4.7% to 1,267 yen after the Nikkei daily said the industrial bearings maker’s revenues in the first-half ending in September is expected to jump 6% to around 490 billion yen and record operating profit to about 47 billion yen.

For the full-year the company forecasted operating profit to increase 5% to 102 billion yen.

Toyo Tire & Rubber Co., Ltd slumped 3.8% to 2,478 yen after the Jiji Press reported that the tire maker found that the company had falsified material test data for 87,804 anti-vibration rubber parts for ship engines, railway cars and other industrial equipment.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc