4:30 PM Tokyo – Stocks in Tokyo closed higher after Tankan survey showed rising inflation pressure and large companies revised higher capital spending plan by 7.4%. The yen weakened against the U.S. dollar. Takashimaya said June retail sales declined.
Stocks in Tokyo closed higher after the latest survey of large companies showed a planned increase in capital spending.
Large companies in Japan are planning to increase capital spending 7.4% in the current fiscal year to March 2015, a Bank of Japan report showed today.
The increase in capital spending was revised higher by 0.1 percentage point from the previous month report.
Investors in Japan are awaiting earnings in June quarter and market sentiment improved after large companies revised capital spending higher.
The Tankan survey conducted by the central bank showed that the inflation pressures are building up. The output price index for manufacturers advanced to minus 2 from minus 3 in March and price index for non-manufacturers rose to 8 from 6.
The Nikkei 225 Stock Average jumped 164.10 or 1.1% to 15,326.20 and the broader Topix index gained 13.52 to 1,276.08.
The yen weakened to close at 101.53 against one U.S. dollar.
Stocks in Review
Bookoff Corp Ltd
increased 1.3% to 837 yen after the second-hand shop operator stated net sales in the year ending in March rose 3.2% to 79.16 billion yen from 76.67 billion yen a year ago.
Net income in the year declined 10.1% to 951 million yen compared to 1.06 billion yen and earnings per share slipped to 52.09 yen from 57.30 yen a year earlier.
JASTEC CO., LTD
gained 0.9% to 777 yen after the software and systems developer said net sales in the second-quarter ending in May climbed 14.4% to 6.20 billion yen from 5.42 billion yen a year ago period.
Net income in the quarter soared 17.9% to 378 million yen compared to 320 million yen and diluted earnings per share increased to 21.74 yen from 18.55 yen a year earlier.
The company lifted its revenue forecast for the year ending in November to 12.15 billion yen from 11.68 billion yen and net profit to increased 693 million yen from 641 million yen from a year ago.
Takashimaya Company, Limited
slid 0.1% to 982 yen after the department store operator said June sales at 14 stores dropped 4.9% and at four regional stores declined 4.9%.
Sales in western area dropped 3.8% and at eastern area plunged 5.5%.