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Market Update

Nikkei Surges 1.3% on Strong Machinery Orders, Dai-ichi Life Lifts Dividend


Author: Hiruki Nakamura
ticker.com
Last Update: 9:20 AM ET May 18 2015

4:30 PM Tokyo – Nikkei average in Tokyo closed at a 3-week high after machinery orders increased in March rose 2.9%. Insurance company stocks jumped after Dai-ichi Life lifted dividend payout. Marubun Corp said annual net rose 7.6%.

Stocks in Tokyo closed higher after machinery orders rose more than expected and also insurance company stocks gained after Dai-ichi Life lifted dividend share of the income.

The seasonally adjusted total value of machinery orders received in March climbed 2.9% following the downwardly revised 1.4% drop in February.

On a yearly basis, core machine orders added 2.6% compared to 5.9% increase in the previous month, the Cabinet Office said today.

In fiscal 2014, total machinery orders increased 8.4% and private-sector orders rose 0.8%.

In the April-June period the total amount of machinery orders are expected to decrease 1.4%.

The seasonally adjusted industrial production in March slipped 0.8% revised from the initial estimate of 1.2% decline, the Ministry of Economy, Trade and Industry reported today.

Shipments in the month decreased 0.6% but inventory ratio jumped to 0.9% and capacity utilization rate dropped 1.2% compared to decline of 2.7% in the month a year ago.

The Nikkei 225 Stock Average jumped 157.35 or 0.8% to 19,890.27 and the broader Topix index increased 19.55 to 1,626.66.

The yen closed at 119.64 against a dollar.

Stocks in Review

Dai-ichi Life Insurance Co Ltd surged 10.6% to 2,197.50 pence after the life insurance company reported revenues in the year ending in March soared 20% to 7.25 trillion yen from 6.04 trillion yen in a year ago period.

Net income in the year surged 82.8% to 142.47 billion yen compared to 77.93 billion yen and diluted earnings per share climbed to 124.87 yen from 78.54 yen in the same period a year ago.

The insurer forecasted net revenues for the year ending in March 2016 to decline 6.6% to 6.77 trillion yen and net income to advance 13% to 161 billion yen.

Dunlop Sports Co Ltd gained 1.1% to 1,246 yen after the sports equipment maker said revenues in the year ending in March jumped 8.8% to 17.09 billion yen from 15.70 billion yen in a year ago period.

Net loss in the year widened to 795 million yen compared to 104 million yen and diluted loss per share climbed to 27.43 yen from 3.60 yen in the same period a year ago.

Hitachi Ltd gained 1.5% to 852.60 yen after the Nikkei news said the diversified conglomerate secured an order worth about 2.4 billion yen to supply signal systems to its Myanmar rail project that is scheduled to complete by June 2017.

Separately the company’s chemical unit will invest about 10 billion yen to set up a plant in the U.S. for key battery material by fiscal 2018.

Marubun Corporation jumped 2.1% to 863 yen after the electronic components maker reported revenues in the year ending in March climbed 7.6% to 2.80 trillion yen from 2.60 trillion yen in a year ago period.

Net income in the year climbed 3.1% to 2.07 billion yen compared to 2 billion yen and earnings per share increased to 79.27 yen from 76.85 yen in the same period a year ago.

Marubun forecasted net revenues in the first-half to soar 11.2% to 137 billion yen and net income to surge 50% to 400 million yen.

The company forecasted net revenues for the year ending in March 2016 to drop 3.7% to 2.70 trillion yen but net income to soar 23.1% to 2.55 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