Stocks in Tokyo gained and retail sales declined at a faster pace in June from May but were well below the sharp fall of 4.3% seen in April. Separate reports showed jobless rate increased in June from a year ago and household spending declined less than expected. The Ministry of Economy, Trade and Industry said retail sales in June declined 0.6% to 11.35 trillion yen, following 0.4% increase in May. On a seasonally adjusted monthly basis retail sales slipped 0.4%, following 4.6% decline in May. Sales from large retailers dropped 1.8% to 1.632 trillion yen from a year ago and slumped 1.2% in May but the decline was smaller compared to 6.7% fall in April. The Ministry of Internal Affairs and Communications reported seasonally adjusted unemployment rate in June was unchanged from May at 3.7%. The participation rate was steady at 59.9%. The Nikkei 225 Stock Average gained 88.67 or 0.6% to 15,618.07 and the broader Topix index rose 4.34 to 1,290.41. The yen closed at 101.98 against one U.S. dollar. Stocks in Review Honda Motor Co., Ltd dropped 0.8% to 3,548 yen after the automaker said net sales in the first-quarter ending in June jumped 5.4% to 2.99 trillion yen from 2.83 trillion yen a year ago. Net income in the quarter climbed 19.7% to 146.5 billion yen compared to 122.4 billion yen and earnings per share jumped to 81.29 yen from 67.97 yen a year earlier. In the quarter, Honda sold 1.06 million vehicles in June quarter and motorcycles sales increased to 4.14 million in the period from 4.05 million in the period a year ago. Honda has expanded capacity in developing nations including India and Indonesia and the sale of remodeled Fit subcompact in Japan contributed to sales growth. The automaker lifted annual sales outlook to 12.8 trillion yen or $125.5 billion from 12.75 trillion yen and net income in the period to 600 billion yen or $5.9 billion from 595 billion yen estimate. Japan Airlines Co Ltd slid 0.3% to 5,920 yen after the airline reported net sales in the first-quarter ending in June rose 4.4% to 307.08 billion yen from 294.10 billion yen a year ago period. Net income in the quarter plunged 19.4% to 14.78 billion yen compared to 18.34 billion yen and earnings per share declined to 81.50 yen from 101.14 yen per share a year earlier. Kao Corporation slipped 0.08% to 4,181.50 yen after the skin and hair care products maker reported net sales in the first-half period ending in June jumped 6.6% from a year ago to 665.94 billion yen. Net income in the period soared 73.3% to 31.65 billion yen compared to 18.26 billion yen and diluted earnings per share jumped to 61.69 yen from 35.38 yen a year earlier. Komatsu Ltd gained 1.6% to 2,350.50 yen after the construction equipment maker stated net sales in the year ending in March increased 1.1% to 460.22 billion yen from 455.16 billion yen a year ago period. Net income in the year rose 1.1% to 37.68 billion yen compared to 37.29 billion yen and diluted earnings per share gained to 39.49 yen from 39.09 yen a year earlier. Nomura Holdings, Inc decreased 0.7% to 666.10 yen after the investment and brokerage group reported revenues in the first-quarter ending in June declined 8.5% to 462.15 billion yen from 505.27 billion yen a year earlier. Net income in the quarter tumbled 70% to 19.86 billion yen compared to 65.89 billion yen and diluted earnings per share declined to 5.26 yen from 17.24 yen a year earlier.

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