Honda, Seiko Epson, Komatsu Fall on Earnings in Tokyo

Nigel Thomas
01 Aug, 2012
New York City

Stocks in Tokyo traded lower and domestic earnings dominated market sentiment. Honda Motor declined o weaker than expected earnings and Komatsu fell on weak outlook. Seiko Epson fell to a record low after it cut its guidance but NEC and Panasonic gained.

[R]7:00 PM Tokyo – Stocks in Tokyo traded lower and domestic earnings dominated market sentiment. Honda Motor declined o weaker than expected earnings and Komatsu fell on weak outlook. Seiko Epson fell to a record low after it cut its guidance but NEC and Panasonic gained.[/R]

Earnings dominated trading sentiment in Tokyo as a new batch of earnings highlighted weakness among machinery makers and shipping lines.

The Nikkei 225 Stock Average slipped 53.21 to 8,641.85 and the broader Topix index slid 6.53 to 729.78.

In trading, turnover declined to 1.56 billion shares from 1.76 billion shares on Tuesday.

Panasonic, NEC and Hirose Electric gained after reporting better than expected earnings and Komatsu, Sumitomo Heavy Industries and Honda Motor fell on weaker than expected earnings.

Stock Movers

Toyota Motor slipped 15 yen to 3,005 yen and Honda Motor Co. plummeted 146 yen or 5.7% to 2,405 yen. Nissan Motor Co Ltd slid 11 yen to 733 yen.

Honda plunged after it reported earnings below expectations.

Canon Inc rose 0.7% to 2,669 yen, Seiko Epson Corp tumbled 15.9% to 529 yen and Ricoh Co Ltd soared 5.7% to 572 yen.

Seiko Epson dropped to a record low after it agreed to pay $150 million to Motorola Mobility and settle charges linked to lawsuit seeking damages arising from the price fixing of liquid crystal displays. Seiko also guided income in the year is expected to fall to 5 billion yen from the previous estimate of 14 billion yen.

Industrial robots maker Nabtesco Corp plunged 13% or 222 yen to 1,503 yen after it offered weak outlook.

Konica Minolta rose 0.9% to 563 yen and Olympus Corp dropped 7% after the camera maker said that it may have broken U.S. foreign corruption practices law.

In addition, Terumo Corp filed a lawsuit against Olympus seeking damages for loss of value from the accounting fraud.

Sony Corp declined 22 yen to 941 yen and Panasonic Corp surged 38 yen or 6.9% to 584 yen. Toshiba rose 2 yen to 264 yen. Nikon dropped 21 yen to 2,163 yen.

After the yesterday’s close Panasonic reported seven-fold increase in operating profit as the company cut expenses and trim losses in its TV unit.

Nintendo Co. Ltd declined 3.3% to 8,440 yen and Fujitsu slipped 1.9% to 304 yen.

Fanuc Ltd plummeted 300 yen to 11,910 yen, Komatsu Ltd plunged 125 yen or 7.1% to 1,633 yen and Hitachi Construction Machinery Co declined 53 yen to 1,365 yen.

Yamada Denki dropped 2.2% or 90 yen to 3,985 yen. Nitori Holdings Co closed up 0.9% to 7,390 yen, apparel retailer Shimamura rose 0.1% to 9,110 yen and Sagami Co closed unchanged at 102 yen.

Fast Retailing Co. gained 120 yen to 16,270 yen and J. Front Retailing Co. Ltd closed slid 6 yen to 384 yen.

Kajima Corp lowered 4 yen to 221 yen and Taisei Corp closed unchanged at 216 yen. Sekisui House Ltd slumped 22 yen to 730 yen and Daito Trust Construction Co Ltd increased 1.8% to 7,690 yen.

Tokyo Tatemono Co., Ltd decreased 6 yen to 286 yen and Mitsui Fudosan slipped 7 yen to 1,519 yen and Sumitomo Realty & Development Co. fell 2 yen to 1,970 yen.

Kansai Electric Power Company, Inc plummeted 35 yen or 5.9% to 553 yen and Tokyo Electric Power slid 3 yen to 128 yen.

Inpex Corp decreased 1.2% to 433,500 yen and Japan Petroleum Exploration Co. declined 100 yen to 2,866 yen.

Mitsui O.S.K. Lines, Ltd slipped 10 yen to 229 yen, Kawasaki Kisen Kaisha, Ltd slid 5 yen to 115 yen and Nippon Yusen K.K. decreased 6 yen to 169 yen.

Mitsubishi UFJ Financial Group slid 9 yen to 372 yen and Sumitomo Mitsui Financial Group rose 1 yen to 2,489 yen. Nomura Holdings, Inc slipped 6 yen to 272 yen.

Tokio Marine slumped 18 yen to 1,794 yen and Mito Securities slipped 2.7% to 142 yen.

Credit Saison Co Ltd dropped 20 yen to 1,770 yen.

Nippon Steel decreased 6 yen to 152 yen and JFE Holdings Inc declined 30 yen to 1,009 yen.