4:30 PM Tokyo – Market indexes in Tokyo increased for the second day in a row. The yen declined 2% and traded above 98 against one dollar. Recruit Holdings acquired the largest executive search company in India. Australian franchise of Domnio’s Pizza acquired Japan based operator.
Market indexes in Tokyo advanced for the second day in a row as the yen declined and trading volume dipped near the low for the year.
Investors speculated on the timing of the next tax increase and real estate companies were in focus as sales tax on properties is likely to increase 3 percentage point to 8% from next April.
However, property boom may be temporary as buyers plan to take advantage of purchase before the planned increase in taxes next year.
Property developers in metropolitan Tokyo sold 81.6% of new apartments that were placed in the market in June, an increase of 2.9% according to the data released by the industry group Real Estate Economic Institute Co.
In addition, in recent month banks have increased mortgage loan rates to 1.65% for 10-year loan.
Sumitomo Mitsui Bank and Bank of Tokyo Mitsubishi UFJ increased rates 35 basis points to 1.7% and Mizuho Bank has increased its mortgage loan rate on 10-year loans to 1.65%.
The Nikkei 225 Stock Average increased 183.16 or 1.3% to 14,050.16 and the Topix gained 12.27 or 1.1% to 1,169.42.
The yen fell 2% to 98.43 against one dollar.
Daily trading volume declined to 2.2 billion shares nearing the yearly low of 2 billion shares reached on Aug 12.
Stocks in Review
Toyota Motor Corp gained 80 yen to 6,410 yen and Honda Motor Co. jumped 60 yen to 3,855 yen. Nissan Motor Co Ltd rose 13 yen to 1,055 yen.
Sony increased 33 yen to 2,000 yen and Canon Inc fell 45 yen to 3,145 yen. Nikon slid 1 yen to 1,688 yen.
Fanuc Corp climbed 380 yen to 15,430 yen and Softbank Corp rose 80 yen to 6,450 yen.
Seven & I Holdings Co added 55 yen to 3,705 yen and Fast Retailing Co. gained 550 to 33,200 yen.
Mitsubishi UFJ Financial Group up 3 yen to 612 yen and Sumitomo Mitsui Financial Group increased 40 yen to 4,580 yen.
Australia''s Domino''s Pizza Enterprises agreed to acquire 75% stake in the fast-food brand''s Japanese business for 12 billion yen.
Hokuetsu Kishu Paper Co., Ltd
fell 1.8% to 440 yen after the Japan based paper maker lowered its profit outlook for the year.
Recruit Holdings Co., Ltd.
, the Chiyoda-ku, Tokyo based consumer and business services provider agreed to acquire Mumbai-based NuGrid Consulting Pvt Ltd, the largest executive search firms in India for an undisclosed amount. Local reports in Mumbai suggested the deal was struck at Rs 150 crore or $25 million.