S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Nikkei at 15-Year High, Toyota Pay Increase in Focus

Author: Hiruki Nakamura
Last Update: 11:14 AM ET March 12 2015

4:30 PM Tokyo – Nikkei in Japan jumped the most in a month and the index surged to a 15-year high. Toyota Motor surged more than 1% on the expectations that the company may agree to larger than usual wage increase for workers.

Stocks in Tokyo closed higher as investors prepared to settle futures contracts and the yen extended losses to a new six-year low.

The Nikkei index gained the most in a month and closed at a 15-year high and domestic reports suggested that Toyota is likely to agree to pay increase for employees.

Toyota jumped more than 1.2% after the Nikkei News reported that the company is likely to accept the demand for monthly worker wage increase by 3,700 yen in addition to automatic increase in annual wages.

The Toyota Motor Workers’ Union has asked for 6,000 yen increase in monthly wages. If Toyota follows through with the most generous wage increase, several other auto workers are expected to follow, helping Abe government to meet its consumer spending target.

The Nikkei 225 Stock Average climbed 267.59 or 1.4% to 18,991.11 and the broader Topix index jumped 20.96 to 1,546.63.

The yen eased and extended losses to 121.17 against a dollar.

Stocks in Review

Dentsu Inc gained 0.8% to 5,240 yen after the communication services provider agreed to acquire 80% stake in Greece-based Mindworks S.A. for undisclosed transaction amount.

Brother Industries Ltd declined 5.7% to 1,891 yen after the office equipments maker agreed to acquire the U.K.-based barcode-printer Domino Printing Sciences Plc to expands its industrial printing business in Europe and U.K..

The deal valued for about £1.03 billion in cash or 915 pence per share, represents a 27% premium to the yesterday close.

Hitachi, Ltd slid 0.3% to 797.10 after the diversified company received its first contract in the European commuter-train market for the provision and maintenance of 70 new trains.

The company secured the contract at the time when it commenced deliveries from earlier order worth $8.8 billion of intercity express model.

Panasonic Corporation increased 1.4% to 1,526.50 yen after the consumer electronic products maker plans to sell its Sanyo Techno Solutions Tottori Co. to an investment fund by this month end for undisclosed transaction amount.

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