4:30 PM Tokyo – Nikkei average in Tokyo rebounded and the yen retained a downward bias as Asian currencies extended losses to the third day after China devalued yuan. Core machine orders in June plunged nearly 8% in Japan compared to 0.6% increase in May. McDonald’s same store sales in first-half plunged 28%.
Nikkei average in Tokyo rebounded and the yen retained a downward bias after China devalued yuan for the second day and traders speculated additional weakness in the Chinese currency.
On the economic front, core machine orders in June plunged 7.9% compared to 0.6% increase in May, the Cabinet Office said today.
For the year, core machine orders surged 16.6% followed by 19.3% decline in the previous month.
The Nikkei 225 Stock Average jumped 202.78 or 1% to 20,595.55 and the broader Topix index added 2.20 to 1,667.95.
The yen eased to 124.51 against a dollar.
Stocks in Review
McDonald''s Holdings Co (Japan) Ltd
jumped 2.2% to 2,655 yen after the fast food chain said net sales in the first-half ending in June plunged 29.5% to 85.28 billion yen from 121 billion yen in a year ago period.
Same store sales in the period tumbled 27.5%.
Net in the period swung to a loss of 26.22 billion yen compared to profit of 1.85 billion yen and diluted loss per share swung to a 197.21 yen from diluted earnings per share of 13.93 yen in the same period a year ago.
The fast food chain said system-wide sales in the period plummeted 27.7% to 172.02 billion yen from 237.78 billion yen in a year ago period.
For the year, McDonald''s Japan forecasted revenues to decline 10% to 200 billion yen and net loss of about 38 billion yen.
Skylark Co Ltd
gained 1.1% to 1,865 yen after the family restaurants operator reported net sales in the first-half ending in June jumped 4.2% to 172.69 billion yen from 165.68 billion yen in a year ago period.
Net income in the period surged 47.4% to 6.57 billion yen compared to 4.45 billion yen and diluted earnings per share increased to 33.47 yen from 23.43 yen in the same period a year ago.
Skylark forecasted revenues for the year to increase 2.8% to 349.50 billion yen and net income to soar 49.9% to 14.19 billion yen.
Softbank Group Corp
dropped 2.6% to 7,491 yen after the communication company acquired additional share up to 22.87 million worth about 10.86 billion yen in wireless carrier Sprint Corporation between August 10 and August 12 through its U.S.-based subsidiary Galaxy Investment Holdings, Inc.
Tokyo Electric Power Co Inc
soared 4.7% to 893 yen after the electricity provider restarted its Kashiwazaki-Kariwa nuclear reactor in Niigata Prefecture after the Fukushima meltdown 4-years ago
The company estimated to improve its balance sheet by more than 8 billion yen per month.
V Cube Inc
slipped 1.1% to 2,128 yen after the visual communication service provider said net sales in the second-quarter ending in June soared 55.8% to 2.70 billion yen from 1.73 billion yen in a year ago period.
Net income in the period more than doubled to 68 million yen compared to 31 million yen and diluted earnings per share increased to 4.80 yen from 3.28 yen in the same period a year ago.