4:30 PM Tokyo – Nikkei average in Tokyo dropped to a five-month low after another slide in Shanghai stocks and trade deficit widened. Kirin acquired 55% stake in the government controlled brewery in Myanmar. Toshiba Corp soared 8% after forming new board.
Stocks in Tokyo dropped following another slide in Shanghai stocks and raising concerns about the stability of the Chinese economy.
Market indexes dropped to a five-month low and trade deficit widened in July.
The trade deficit in July widened to 268.06 billion yen compared to downwardly revised 70.5 billion yen deficit in June, the Ministry of Finance said.
Exports in the month jumped 7.6% following a 9.5% increase in June and import dropped 3.2% followed by 2.9% decrease a month earlier.
The Nikkei 225 Stock Average declined 331.84 or 1.6% to 20,222.63 and the broader Topix index slumped 23.74 or 1.4% to 1,648.48.
The yen eased to 124.23 against a dollar.
Stocks in Review
Kirin Holdings Co Ltd
decreased 1.6% to 1.811.50 yen after the alcoholic and soft drinks maker agreed to acquire 55% stake in the government controlled Myanmar Brewery Limited for about 69.7 billion yen or $560 million.
Kitagawa Seiki Co., Ltd
jumped 3.8% to 442 yen after the industrial machinery maker said net sales in the year ending in June increased 6.3% to 4.28 billion yen from 4.03 billion yen in a year ago period.
Net income in the period doubled to 100.9 million yen compared to 89 million yen and diluted earnings per share soared to 21.4 yen from 12.8 yen in the same period a year ago.
The company forecasted net sales for the first-half to advance 4% to 4.45 billion yen and net income to decline 16.9% to 150 million yen.
Park24 Co Ltd
slipped 1.3% to 2,447 yen after the Nikkei news said parking services provider’s sales for the nine-month to soar 6% to over 130 billion yen but operating profit to decline 5% to 12 billion yen.
The company reaffirmed full-year sales forecast to surge 8% to 180 billion yen and operating profit to increase 6% to 18.6 billion yen.
SoftBank Group Corp
gained 0.6% to 7,477 yen after the communication company’s president and chief operating officer Nikesh Arora would buy the company''s shares worth about 60 billion yen or $483 million in the open market in next six months.
Separately, the company increased its stake in the U.S.-based unprofitable wireless operator Sprint Corporation for the second time this month worth about 7.51 billion yen or $73 million for 16.8 million shares.