Japan Stocks gain on strong Q1 results

The Japan share market inclined on Tuesday, 07 August 2018, as risk appetite buying underpinned by tracking positive lead from Wall Street overnight coupled with better than expected earnings reports from index-heavyweight SoftBank and earnings releases from Japan Inc. Among TSE33 issues, 26 issues inclined, while 7 issues declined, with shares of Information & Communication, Oil & Coal Products, Construction, Mining, Iron & Steel, and Insurance issues being notable gainers, while Fishery, Agriculture & Forestry, Precision Instruments, Banks, and Pulp & Paper issues were notable losers. Around late afternoon, the benchmark Nikkei 225 index advanced 0.6%, or 135.11 points, to 22,642.43. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 0.53%, or 9.14 points, to 1,742.04.

Among individual stocks, SoftBank Group Corp shares inclined as much as 6% after reporting 49% jump in quarterly profit, boosted by the sale of its stake in Indian e-commerce giant Flipkart in the first public divestment by its massive Vision Fund.

 

Japan Steel Works shares surged as much as 20% after it raised its net profit outlook to 18 billion yen from 15 billion yen for the fiscal year ending March 2019, thanks to an improvement in its industrial machinery business.

Maruha Nichiro shares dropped as much as 6% after posted 32% drop in operating profit to 5.18 billion yen for quarter ended June 2018.

ECONOMIC NEWS: Japan Household Spending Down 1.2% On Year In June -- Japan average household spending was down 1.2% on year in June, coming in at 267,641 yen, the ministry of Internal Affairs and Communications said on Tuesday, following the 3.9% drop in May. The average of monthly income per household stood at 808,716 yen, up 9.1% on year.

CURRENCY NEWS: The Japanese yen changed hands in the lower 111 yen zone against U.S. dollar on Tuesday. The dollar was quoted at 111.33-34 yen compared with 111.35-45 yen in New York and 111.26-27 yen on Monday in Tokyo.

OFFSHORE MARKET NEWS, US stock market closed slight higher on Monday. The Dow added 39.60 points or 0.16% to 25,502.18, while the Nasdaq gained 47.66 points or 0.61% to 7,859.68 and the S&P 500 rose 10.05 points or 0.35% to 2,850.40.

The major European markets ended mixed on Monday. The DAX of Germany dropped 0.14% and the CAC of France fell 0.03%, while the FTSE 100 of the U.K. gained 0.06%.

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