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Market Update

Nikkei Soars 1.9% After Worst Third Quarter in Five Years

Author: Hiruki Nakamura
Last Update: 1:49 AM ET October 01 2015

4:30 PM Tokyo – Nikkei average in Tokyo soared on the first day of the last quarter after falling the most in the previous quarter in four years. Tankan survey, released by the Bank of Japan showed mixed economic picture with the struggling manufacturing sector but growing service sector.

Nikkei average in Tokyo surged following the worst quarterly decline in five years in the previous session and investors took in stride the mixed economic reports.

The Bank of Japan Tankan survey showed the business confidence index declined among Japanese companies for the first time in the year but service sector showed an improvement.

The leading indicator for the next month also showed that the data for manufacturing could worsen in the next month.

In addition, China reported its manufacturing sector gauge, the purchasing managers index in September rose only a tenth of a percentage point to 49.8. Any reading below 50 shows a decline in growth rate.

The Nikkei 225 Stock Average jumped 334.27 or 1.9% to 17,722.42 and the broader Topix index soared 31.58 or 2.2% to 1,442.74.

The yen strengthened to 120.19 against a dollar.

Stocks in Review

Askul Corporation slid 0.2% to 4,535 yen after the office products retailer said net sales in September jumped 10.9% to 23.28 billion yen and net sales in Lohaco business surged 51.6% to 2.33 billion yen in the same month a year ago.

Fujifilm Holdings Corporation rose 0.3% to 4,471 yen after the films, cameras and optical devices maker plans to buy back up to 30 million shares for as much as 100 billion yen through March 2016.

Separately, the company’s U.S.-based subsidiary agreed to acquire a solvent manufacturer Ultra Pure Solutions, Inc, without disclosing of financial terms.

Jastec Co., Ltd gained 1.4% to 1,044 yen after the software services provider said net sales in the third-quarter ending in August soared 15% from a year ago to 10.69 billion yen.

Net income in the quarter surged 320% to 2.41 billion yen compared to 574 million yen and diluted earnings per share jumped to 136.73 yen from 333 yen.

Mizuho Financial Group Inc soared 3.2% to 230.10 yen after the financial services provider and Dai-ichi Life Insurance Co. signed an agreement to set up a new company to integrate their asset management operations with 54 trillion yen in assets under management.

Nagaileben Co., Ltd increased 2% to 2,255 yen after the surgical wear maker reported net sales in the year ending in August fell 0.4% from a year ago to 16.15 billion yen.

Net income in the year edged up 0.1% to 3.23 billion yen compared to 3.22 billion yen and earnings per share rose to 95.64 yen from 94.14 yen.

The company forecasted net sales for the fiscal 2016 to jump 2.2% to 16.50 billion yen while net income to increase 0.3% to 3.24 billion yen.

Shimizu Corporation dropped 2.8% to 995 yen after the construction company plans to sell five-year convertible bonds worth as 30 billion yen in the overseas markets.

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