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Market Update

Topix Erases Yearly Losses, Recruit Prepares for $1.7 B IPO


Author: Hiruki Nakamura
ticker.com
Last Update: 1:41 PM ET September 10 2014

4:30 PM Tokyo – The yen Tokyo traded to a six-year low as the U.S. dollar rose against most currencies on the prospect of higher rates. The Topix advanced to erase losses in the year so far and closed at high not seen since July 2008.

Stocks gained and the Topix index advanced following the yen weakness and machinery orders rose less than expected.

The yen declined to a low not seen since September 2008 as investors began factoring higher interest rates in the U.K. and the U.S.

The Nikkei 225 Stock Average gained 39.63 or 0.2% to 15,788.78 and the broader Topix index rose 7.17 to 1,306.79.

The yen declined to close at 106.47 against one U.S. dollar.

The Topix has rebounded 15% from the April 14 on the optimism that the overhaul of Government Pension Investment Fund may lead to higher allocation to domestic equities.

Japan’s machinery orders increased 3.5% in July from the previous month after rising 8.8% in June.

Stocks in Review

Ajinomoto Co Inc gained 1.4% to 1,738.50 yen after the seasonings and processed food maker agreed to acquire the U.S.-based privately held frozen food maker Windsor Quality Holdings for around $800 million to expand in North America.

Kyushu Electric Power Company, Inc soared 4.5% to 1,103 yen after the power supply company received safety approval from the atomic regulator for its two reactors.

McDonald''s Holdings Co (Japan) Ltd climbed 4.6% to 2,730 yen after the hamburger restaurant operator said total sales in the month of August plunged 25.1% while the number of customers plummeted 16.9% and average sales per customer dropped 9.8% in August.

McDonald''s Japan withdrew its profit forecasts for the fiscal year as the fast-food chain continued to suffer from a food-safety scandal in China.

MonotaRO Co.,Ltd slipped 1.5% to 2,897 yen after the online mail order services provider said total sales in the month of August climbed 21.8% to 3.18 billion yen from 2.61 billion yen a year ago month.

Recruit Holdings Co Ltd, the Tokyo-based employment service provider plans to raise about 178 billion yen or $1.7 billion through initial public offering on the Tokyo Stock Exchange in October.

Samco Inc jumped 2.9% to 1,065 yen after the electronic parts maker said net sales in the year ending in July rose 0.8% to 4.23 billion yen from 4.20 billion yen a year ago period.

Net income in the year tumbled 46.3% to 190 million yen compared to 354 million yen and earnings per share declined 27.05 yen from 50.38 yen a year earlier.

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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