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Market Update

Nikkei in 2-day Surge of 7.5%, Softbank Lowered Outlook


Author: Hiruki Nakamura
ticker.com
Last Update: 5:22 PM ET November 04 2014

4:30 PM Tokyo Market indexes in Tokyo advanced for the second day in a row and extended two-day gains to 7.5% after the surprise move from the Bank of Japan and higher target range for stocks by the government controlled pension fund. Softbank lowered annual earnings outlook.

Stocks in Tokyo advanced for the second day in a row after investors took optimistic view of the stimulus expansion move from the Bank of Japan and the government controlled pension fund announced to increase stock allocation.

The Nikkei 225 Stock Average climbed 448.71 or 2.7% to 16,862.47 and the broader Topix index jumped 35.01 or 2.6% to 1,368.65.

The yen surged and closed at 113.27 against one dollar.

The stock market indexes climbed for the second day in a row after GPIF announced it plans to cut domestic bond allocation to 35% from 60% and increase target allocation for domestic and international stocks to 25% each from 12% each.

The Government Pension Investment Fund also tripled its allocation target for real estate trusts.

Stocks in Review

Brother Industries, Ltd soared 4.2% to 2,045 yen after the office equipment maker reported net sale in the first-half ending in September surged 12.6% to 324.67 billion yen from 288.35 billion yen a year ago period.

Net income in the period jumped 476.9% to 37.12 billion yen compared to 6.43 billion yen and diluted earnings per share climbed to 141.09 yen from 24.09 yen in the same period a year ago.

Konica Minolta Inc climbed 4% to 1,263 yen after the optical, industrial and medical equipment maker said net sales in the second-quarter ending in September jumped 6.2% to 478.56 billion yen from 450.45 billion yen a year ago period.

Net income in the quarter surged 164.2% to 14.68 billion yen compared to 5.56 billion yen and diluted earnings per share increased to 28.79 yen from 10.46 yen in the same period a year ago.

Nissan Motor Co Ltd jumped 3% to 1,028 yen after the automaker reported net revenue in the first-half ending in September soared 8.2% to 5.14 trillion yen from 4.76 trillion yen a year ago period.

Net income in the period climbed 24.9% to 237 billion yen compared to 189.82 billion yen and diluted earnings per share jumped to 56.54 yen from 45.29 yen in the same period a year ago.

The company lifted revenue forecast for the year to increase 3% to 10.80 trillion yen and net income may jump 4.1% to 405 billion yen compared to a year ago.

Softbank Corp gained 1.1% to 8,027 yen after the wireless communication services provider reported sales in the second-quarter ending in September surged 57.9% to 4.10 trillion yen from 2.60 trillion yen a year ago period.

Net income in the quarter soared 36.7% to 560.71 billion yen compared to 410.17 billion yen and diluted earnings per share jumped to 471.25 yen from 343.70 yen in the same period a year ago.

Softbank reported earnings in the second-quarter were benefited from the Initial Public Offering of Alibaba.

Sprint, the U.S. subsidiary of the company, yesterday reported loss widened to $765 million from $699 million in a year ago period.

The wireless carrier forecasted operating profit for the year to drop 10% to 900 billion yen from previous guidance of 1 trillion yen.

Yamaha Corp increased 1.7% to 1,526 yen after the musical instruments maker reported net sales in the second-quarter ending in September climbed 4.4% to 206.39 billion yen from 197.67 billion yen a year ago period.

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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