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Market Update

Japan GDP Growth Slows to 1.9% Rate; Mizuho, Mitsubishi UFJ Net Rise

Author: Hiruki Nakamura
Last Update: 11:13 AM ET November 14 2013

4:30 PM Tokyo Ė Japanís GDP growth slowed for the second quarter in a row and September quarter growth slowed to annual rate of 1.9%. The yen hovered near 100-mark after investors took a positive view of the latest comments from Fed Vice Chairman Yellen. Mizuho Financial lifted its annual outlook. Mitsubishi UFJ net nearly doubled.

Investors reacted to international news and took the latest economic growth data in strides.

Japanís gross domestic products in the September quarter increased at an annualized 1.9% following 3.8% rise in the previous quarter, the Cabinet Office reported today.

The economic growth was supported by strong real estate investment but weaker consumer spending and fall in export grow weighed on the economic advance.

The Nikkei 225 Stock Average climbed 309.25 or 2.1% to 14,876.41 and the Topix jumped 14.36 or 1.2% to 1,218.55.

Market indexes advanced after comments from Fed Vice Chairman Janet Yellen suggested stimulus tapering is not likely in the near future.

Yellen said at a Senate hearing that the U.S. economy and labor market are performing ďfar short of their potentialĒ and must show improvement before the Fed can begin trimming its bond purchase program.

The yen declined 0.4% to 99.66 against one dollar after Finance Minister Taro Aso said Japan should retain its right to intervene in currency markets if necessary.

Aso commented in response to a question about the Japanís special foreign-exchange accounts law at a parliamentary committee.

After the close Mitsubishi UFJ and Mizuho reported earnings.

Stocks in Review

Toyota Motor Corp gained 30 yen to 6,310 yen and Honda Motor Co. increased 35 yen to 4,055 yen. Nissan Motor Co Ltd jumped 10 yen to 921 yen.

Sony climbed 40 yen to 1,786 yen.

Softbank Corp rose 90 yen to 7,600 yen. Fast Retailing Co. soared 1,700 yen or 5.2% to 34,250 yen.

Mitsubishi UFJ Financial Group, Inc gained 1.6% to 645 and the Japan-based banking services provider said revenue in the first-half jumped 9.6% to 2.58 trillion yen from 2.36 trillion yen a year earlier.

Net income in the period surged to 530.2 billion yen compared to 290.5 billion yen and diluted earnings per share rose to 36.68 yen from 19.84 yen a year earlier.

Mizuho Financial Group, Inc rose 0.9% to 214 yen and the third largest bank reported revenue in the first-half climbed 6.4% to 1.54 trillion yen from 1.45 trillion yen a year earlier.

Net income in the period surged 133.2% to 429.7 billion yen compared to 184.3 billion yen and diluted earnings per share increased to 16.92 yen from 7.24 yen a year earlier.

Mizuho Financial lifted profit estimate for the year to 600 billion yen from 500 billion yen.

Mizuno Corporation declined 3.1% to 553 yen after the Japan-based sportswear maker reaffirmed the consolidated revenue for the year of 1.83 trillion yen and lowered its guidance for operating profit to 55 billion yen from 70 billion yen. For the year, net profit is expected to decline 21 billion yen from previous guidance of 42 billion yen.

Nomura Holdings, Inc jumped 2.6% to 754 yen after the largest Japan-based investment and financial service provider said trading profit in the second quarter ending in September climbed 24% from a year ago.

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