Nikkei in 6-Day Slump, Fourth Yearly Loss at Sony

Nigel Thomas
10 Apr, 2012
New York City

Stocks in Japan eased for the sixth day in a row as investors focused on earnings season ahead next week. Sony Corp estimated $6.4 billion annual net loss, fourth yearly loss in a row. The electronics maker is planning to eliminate 10,000 jobs or 6% of its staff.

[R]8:30 PM Tokyo – Stocks in Japan eased for the sixth day in a row as investors focused on earnings season ahead next week. Sony Corp estimated $6.4 billion annual net loss, fourth yearly loss in a row. The electronics maker is planning to eliminate 10,000 jobs or 6% of its staff.[/R]

Stocks in Tokyo traded lower for the sixth day in a row after Bank of Japan left key lending rate near zero and asset purchase plan unchanged.

The yen advanced to a one-month high as the central bank offered no new incentive at the conclusion of its 2-day meeting.

The Nikkei 225 Stock Average fell 8.24 to 9,538.02 and the broader Topix index decreased 0.26 to 813.43.

The Nikkei has declined 5.3% in the month so far and the index is in a longest slump in the last four months.

The yen strengthened to 81.16 against one dollar after rising as high as 81.05 and the euro fell 0.6% to 106.20 yen.

Stock Movers

Toyota Motor closed up 50 yen to 3,360 yen and Honda Motor Co. gained 15 yen to 2,952 yen and Nissan Motor Co Ltd increased 5 yen to 832 yen.

Kansai Electric Power Company, Inc advanced 44 to 1351 yen after Prime Minister held talks last evening to restart two nuclear reactors owned by the company that passed stress tests. Tokyo Electric Power fell 5 yen to 210 yen.

Sony Corp declined 58 yen to 1,586 yen and the struggling electronics maker estimated a loss of 520 billion yen or $6.4 billion compared to its previous estimate of 220 billion yen. The company retained its operating loss forecast of 95 billion yen. The annual results are scheduled to be released on May 21.

The loss forecast is twice the previous estimate and is in the fourth year in a row as the company struggles to stem losses in its TV unit and battle competition from Apple and Korean rivals. The company also plans to eliminate 10,000 jobs or 6% of its workforce to aggressively cut costs.

Sony stock has lost nearly half its value in one year of trading.

Panasonic Corp closed down 28 yen at 671 yen and Canon Inc dropped 30 yen to 3,750 yen. Nintendo Co. Ltd increased 10 yen to 12,040 yen.

Sharp declined 24 yen to 530 yen after a Nikkei newspaper report suggested that the company’s net loss may soar to 390 billion yen or $4.78 billion.

Olympus Corp closed down 6 yen to 1,309 yen, Nikon increased 8 yen to 2,376 yen and Fanuc Ltd closed down 10 yen to 13,960 yen. Hitachi Ltd fell 1 yen to 518 yen.

China linked stocks declined after the fast growing nation reported import growth of 5.3% in March from a year ago, less than 9% expected by most economists.

Komatsu Ltd advanced 21 yen to 2,317 yen, Hitachi Construction Machinery Co gained 29 yen to 1,736 yen and Toyo Engineering Corp closed fell 5 yen to 361 yen.

Mitsui O.S.K. Lines, Ltd unchanged to 339 yen, Kawasaki Kisen Kaisha, Ltd decreased 4 yen to 181 yen and Nippon Yusen K.K. fell 1 cent to 248 yen.

Fast Retailing Co. soared 140 yen to 17,490 yen and J. Front Retailing Co. Ltd closed down 3 yen to 427 yen.

Mitsubishi UFJ Financial Group gained 3 yen to 394 yen and Sumitomo Mitsui Financial Group surged 25 yen to 2,613 yen. Nomura Holdings, Inc rose 3 yen to 352 yen.

Tokyo Tatemono Co., Ltd closed unchanged to 304 yen and Mitsui Fudosan increased 9 yen to 1,482 yen and Sumitomo Realty & Development Co. advanced 5 yen to 1,784 yen.

Nippon Steel fell 1 yen to 206 yen and JFE Holdings Inc dropped 1.5% or 26 yen to 1,621 yen.