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Market Update

Nikkei Soars 1.9%, Trade Deficit Plunges in September


Author: Hiruki Nakamura
ticker.com
Last Update: 7:29 AM ET October 21 2015

4:30 PM Tokyo Nikkei average in Tokyo jumped 1.9% to a six-week high after exports in September rose less-than-expected stoking the speculation of another round of stimulus from the government. Nidec Corp soared after reporting better-than-expected sales and lifted annual sales outlook.

Nikkei average surged nearly 2% and September month trade deficit plunged but exports increase was lower-than-expected fuelling speculation of another round of stimulus from the government or the central bank.

The merchandise trade deficit in September plunged 88.1% to of 114.5 billion yen compared to deficit of 961.98 billion yen in a year ago month, the Ministry of Finance said.

Export in September rose 0.6% to 6.42 trillion yen while import in the month tumbled 11.1% to 6.53 trillion yen from 7.34 trillion yen in the same month a year ago.

The Nikkei 225 Stock Average jumped 347.13 or 1.9% to 18,554.28 and the broader Topix index increased 27.53 to 1,526.81.

The yen strengthened to 120.03 against a dollar.

Stocks in Review

IHI Corporation advanced 3.1% to 368 yen after the industrial conglomerate lowered its net sales forecast for the first-half ending in September to about 680 billion yen from the earlier estimate of about 700 billion yen.

The company forecasted net in the year swung to a loss of 4 billion yen compared to previous guidance for profit of about 6 billion yen.

For the year, the conglomerate forecasted net income to decline 53.8% to 18 billion yen from the earlier guidance of 39 billion yen.

Idemitsu Kosan Co., Ltd slipped 0.6% to 1,974 yen after the petrochemical company lowered revenues forecast for the first-half ending in September to plunge 10.3% to 1.87 trillion yen from the earlier guidance of 2.08 trillion yen.

The company forecasted net in the year swung to a loss of 7 billion yen compared to previous guidance of 18 billion yen in profit.

Nidec Corporation jumped 2.8% to 8,834 yen after the electric motors and equipment maker said net sales in the first-half ending in September soared 20% from a year ago to 587.35 billion yen.

Net income in the period surged 29.7% to 47.62 billion yen compared to 36.71 billion yen and diluted earnings per share rose to 159.57 yen from 124.85 yen.

The company forecasted net sales for the year to jump 11.8% to 1.15 trillion yen and net income to advance 18.4% to 90 billion yen.

Separately, today the company agreed to acquire the U.S.-based privately-owned motor controls producer KB Electronics for an undisclosed sum.

Tokyo Electric Power Co Inc gained 1.3% to 843 yen after the electric power supplier plans to issue bonds in April 2016 and raise 330 billion yen, and shift to a holding company with three subsidiaries.

The bonds will be issued by the power transmission and distribution units.

Yaskawa Electric Corp surged 10.1% to 1,383 yen after the engineering robots maker reported net sales in the first-half ending in September jumped 7.2% from a year ago to 207.95 billion yen.

Net income in the period rose 2.9% to 12.03 billion yen compared to 11.69 billion yen and diluted earnings per share increased to 45.31 yen from 44.09 yen.

The company lowered revenue estimate for the year to about 420 billion yen from the earlier forecast of 435 billion yen and net income to increase 3.3% to 24 billion yen.

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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