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Japan Exchange racks up ¥16.6 billion in profit

Bloomberg

Japan Exchange Group Inc., operator of the Tokyo and Osaka stock markets, beat its first-half profit forecast as the biggest share rally in four decades boosted trading volumes.

Net income was ¥16.6 billion in the six months that ended Sept. 30, Japan Exchange said in a regulatory filing Wednesday, topping its forecast for a ¥15 billion profit.

Revenue was ¥61.7 billion, compared with its projection of ¥58 billion. The company reiterated its forecast for full-year profit of ¥22 billion in the world’s second-largest equity market.

Japan Exchange lifted its revenue forecast to ¥105 billion for the year ending next March 31 from ¥101.5 billion and increased its operating-profit outlook by 5.5 percent to ¥38.5 billion.

Both increases were less than analysts had estimated. The company didn’t provide year-earlier comparisons because of the merger.

Shares of Japan Exchange more than tripled since it was formed through the merger of the Tokyo and Osaka bourses in January. The Topix index is the world’s best-performing developed equity gauge this year and gained 62 percent in the four quarters through September, the most dramatic rally since 1973.

Derivatives integration

Kyodo

The Tokyo Stock Exchange and the Osaka Securities Exchange will integrate their derivatives trading operations into the Osaka bourse on March 24.

The two core arms under Japan Exchange Group Inc. unified their cash stock trading venues into the TSE in July.