Nikkei 225 Tops 20,000 First Time Since 2000 on Fast Retailing

PT BEST PROFIT FUTURESJapan’s Nikkei 225 Stock Average rose above 20,000 for the first time in 15 years, fueled by Fast Retailing Co. after the Uniqlo clothes seller boosted its profit forecast.

The Nikkei 225 added 0.3 percent to 20,006 as of 9:08 a.m. in Tokyo, headed for the highest close since April 14, 2000. Fast Retailing rallied 3.1 percent, the biggest boost to the gauge, after raising its net-income forecast by 20 percent. The Topix index advanced 1,596.19 percent to 1,596.41, headed for a weekly gain of 2.1 percent. The yen traded at 120.61 per dollar after yesterday weakening 0.4 percent as strong U.S. employment figures boosted the greenback.

Fast Retailing raised its forecast for annual profit by 20 percent to 120 billion yen ($ 998 million), citing strong domestic and international sales. Nomura boosted its outlook for the retailer, saying its shares should reach 55,000 yen in 12 months. They closed yesterday at 48,500 yen.

The yen fell against the dollar after a report showed fewer Americans filed jobless claims in the past four weeks than at any time in almost 15 years. The data came a day after minutes of the Federal Reserve’s last meeting suggested the first interest-rate increase since 2006 is still on the table for this year.

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Source : Bloomberg

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Japan Stocks Rise on Global Easing Outlook; Fast Retailing Jumps

 

 

Japanese stocks rose for a second day on speculation central banks will support growth even as the U.S. economy shows signs of strengthening. Fast Retailing Co. jumped after reporting a spike in profit.

 

Toyota Motor Corp., which gets three quarters of its revenue abroad, added 1 percent to be the biggest single support to the Topix index. Fast Retailing, owner of Uniqlo brand stores, jumped 3.1 percent after net income beat analyst estimates. Kewpie Corp., a mayonnaise maker, dropped 2.5 percent after UBS Group AG cut its rating on the stock. Airlines sank the most among the 33 Topix industry groups as crude prices advanced for a third day.

 

The Topix climbed 0.3 percent to 1,381.25 at the trading break in Tokyo, headed for the biggest two-day rally in almost three weeks and paring its loss this week to 1.9 percent. The Nikkei 225 Stock Average added 0.5 percent to 17,255.33. The yen gained 0.1 percent to 119.57 per dollar after weakening the past two days. The euro sank to the lowest in nine years against the dollar after the European Central Bank hinted it may soon begin buying government bonds. The Standard & Poor’s 500 Index erased 2015 losses yesterday as investors took comfort the Federal Reserve will act cautiously when considering the timeframe for interest-rate increases.

 

Source : Bloomberg

 


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