Nikkei in Tokyo Struggles, Honda Lowers Outlook by 20%

Nigel Thomas
29 Oct, 2012
New York City

Stocks in Tokyo were under pressure after Honda lowered its annual income outlook by 20%. Several Japanese companies have cut profit outlook after extended boycott of Japanese products in China dragged sales. NTT DoCoMo lowered its annual net outlook by 9%.

[R]7:00 PM Tokyo – Stocks in Tokyo were under pressure after Honda lowered its annual income outlook by 20%. Several Japanese companies have cut profit outlook after extended boycott of Japanese products in China dragged sales. NTT DoCoMo lowered its annual net outlook by 9%.[/R]

Stocks in Tokyo were under pressure after Honda lowered its annual net income outlook on a decline in auto sales in China after a boycott of Japanese products.

Automakers led the decliners and market declines were trimmed on the expectations of another round of easing from the Bank of Japan on Tuesday.

The Nikkei 225 Stock Average slid 3.72 to 8,929.34 and the broader Topix Index edged down 0.93 to 740.30.

Stocks in Review

Japan Airlines Co Ltd closed unchanged at 3,830 yen and All Nippon Airways added 1.2% to 162 yen.

Japan Tobacco slid 0.2% to 2,294 yen.

Mitsui O.S.K. Lines, Ltd lowered 2 yen to 183 yen and Kawasaki Kisen Kaisha, Ltd closed unchanged at 97 yen and Nippon Yusen K.K. closed unchanged at 146 yen.

Honda declined 4.7% after the car maker lowered its fiscal year net income by 20% to 375 billion yen or $4.7 billion after sales in China declined on the boycott of Japanese products.

Toyota Motor Corp. declined 50 yen to 3,030 yen and Honda Motor Co. plummeted 117 yen to 2,399 yen and Nissan Motor Co Ltd slumped 15 yen to 670 yen.

Nippon Steel closed unchanged at 172 yen and JFE Holdings Inc dropped 37 yen to 1,091 yen. Tokyo Steel Manufacturing slid 2 yen to 250 yen.

TDK declined 47 yen to 2,885 yen, Murata Manufacturing Co slumped 20 yen to 3,885 yen and Meiko Electronics Co Ltd gained 2.8% or 630 yen.

Shimano Inc slumped 20 yen to 5,180 yen.

Seiko Epson Corp added 2 yen to 455 yen and Ricoh Co Ltd slipped 14 yen to 695 yen and Sony Corp decreased 6 yen to 940.

Panasonic Corp down 1 yen to 492 yen decreased 2.8% on the media reports that the company may shrink its mobile phone business after it suffers market losses to Apple and Samsung.

Canon Inc plummeted 45 yen to 2,515 yen, Nikon slumped 26 yen to 1,988 yen and Olympus Corp. dropped 1.3% to 1,363 yen.

Nintendo Co. Ltd declined 150 yen to 10,160 yen, Fujitsu up 2 yen to 304 yen and Pioneer Corp. lowered 1 yen to 188 yen. Sharp Corp slipped 4 yen to 162 yen.

Fanuc Corp. climbed 60 yen to 12,630 yen and Komatsu Ltd lowered 1 yen to 1,646 yen. Hitachi Construction Machinery Co slumped 35 yen to 1,306 yen.

Nippon Sheet Glass Co. rose 3.3% to 62 yen after Nikkei business daily estimated that the company is likely to post an operating loss of 3 billion yen in September quarter compared to previous loss estimate of 4.5 billion yen.

The company also said it plans to close its glass plants in Finland and Sweden by the end of next year on the lower demand for automotive glass.

NTT DoCoMo declined 6% to 116,000 yen after it lowered full year profit outlook by 9% to 507 billion yen as the company struggled to retain customers looking for iPhone 5.

NEC Corp increased 5.7% to 148 yen and reported first half profit of 47.7 billion yen after reporting first quarter loss of 7.88 billion yen.

FamilyMart Co Ltd, the convenience chain operator increased 15 yen to 3,870 yen and Lawson advanced 100 yen to 5,980 yen. Ito En Ltd dropped 26 yen to 1,521 yen.

Seven & I Holdings Co gained 5 yen to 2,510 yen.

Yamada Denki jumped 95 yen to 3,330 yen. Nitori Holdings Co plummeted 80 yen to 6,480 yen, apparel retailer Shimamura declined 40 yen to 8,240 yen and Sagami Co down 1 yen to 117 yen.

Fast Retailing Co. climbed 60 yen to 17,830 yen and J. Front Retailing Co. Ltd added 2 yen to 419 yen.

Credit Saison Co Ltd increased 2 yen to 1,749 yen.

Tokyo Tatemono Co., Ltd slid 1 yen to 324 yen and Mitsui Fudosan jumped 24 yen to 1,641 yen and Sumitomo Realty & Development Co. climbed 36 yen to 2,207 yen.

Inpex Corp downed 0.7% to 457,000 yen and Japan Petroleum Exploration Co. plunged 285 yen or 8.5% to 3,055 yen. Tokyo Electric Power Company, Inc. slid 2 yen to 127 yen.

Mitsubishi UFJ Financial Group closed unchanged at 362 yen and Sumitomo Mitsui Financial Group increased 20 yen to 2,420 yen. Nomura Holdings, Inc lowered 2 yen to 283 yen.