4:30 PM Tokyo – Nikkei Average in Tokyo surged 2.4% after the government controlled pension fund increased equity asset margin limit ahead of expectations. The revision surprised the market and formal target asset allocation is set to be revised in September.
Stocks in Tokyo surged after pension fund controlled by Japanese government relaxed its limits for adding equities but held the target for the risky assets.
The surprise and earlier than expected change in the stance of the pension fund surprised the market and investors bid up stocks.
Health Ministry of Japan confirmed the report and added that deviation limits to risky assets were revised at the beginning of the fiscal year and formal change in target asset allocation is expected to be revised in September.
The GPIF, the pension fund, is expected to increase its target equity asset allocation to 20% from the current 12%.
The Nikkei 225 Stock Average climbed 352.15 or 2.4% to 15,130.52 and the broader Topix index jumped 24.25 or 1.9% to 1,252.51.
The yen closed at 102.07 against one U.S. dollar.
Stocks in Review
soared 4.5% to 3,245 yen after the wigs maker said net sales in the first-quarter ending in June fell 1.4% to 9.55 billion yen from 9.68 billion yen a year ago period.
Net income in the quarter plunged 48.4% to 625 million yen compared to 1.21 billion yen and diluted earnings per share declined to 37.70 yen from 76.09 yen a year earlier.
Nippon Suisan Kaisha Ltd
jumped 3.1% to 298 yen after the marine and food product maker reported net sales in the first-quarter ending in June jumped 6.5% to 151.66 billion yen from 142.43 billion yen a year ago period.
Net income in the quarter declined 7.4% to 2.50 billion yen compared to 2.69 billion yen and earnings per share slipped to 9.03 yen from 9.75 yen a year earlier.
Next Co Ltd
climbed 4.8% to 748 yen after the online real estate services provider stated revenues in the first-quarter ending in June soared 13.4% to 3.85 billion yen from 3.40 billion yen a year ago period.
Net income in the quarter plummeted 19% to 418 million yen compared to 516 million yen and earnings per share dropped to 7.41 yen from 9.15 yen a year earlier.
declined 4.9% to 1,815 yen after the electronic parts and devices maker reported net sales in the first-quarter ending in June slid 0.4% to 98.14 billion yen from 98.52 billion yen a year ago period.
Net income in the quarter surged 27% to 1.74 billion yen compared to 1.37 billion yen and earnings per share climbed to 73.63 yen from 58 yen a year earlier.
Toyo Tire & Rubber Co., Ltd
tumbled 11.5% to 1,678 yen after the tire maker said net sales in the first-half ending in June jumped 8.2% to 187.32 billion yen from 173.08 billion yen a year ago period.
Net income in the quarter climbed 69% to 15.27 billion yen compared to 9.03 billion yen from a year earlier.