Nikkei Tempers Advance on Weakness in Canon, Nintendo and Shiseido

Hiruki Nakamura
25 Apr, 2013
New York City

In cautious trading, the benchmark Nikkei index gained and the yen inched higher. Nintendo, Canon and Shiseido declined on earnings disappointments but Japan Tobacco traded higher on better than expected current fiscal year outlook.

[R]5:30 PM Tokyo – In cautious trading, the benchmark Nikkei index gained and the yen inched higher. Nintendo, Canon and Shiseido declined on earnings disappointments but Japan Tobacco traded higher on better than expected current fiscal year outlook.[/R]

Stocks in Tokyo traded higher but the mood around trading desks was cautious after the benchmark Nikkei index jumped to five-year high and latest earnings revisions were less than expected.

Canon lifted its earnings outlook but was cautious for the year and Nintendo reported second quarterly loss and Shiseido booked an impairment charge on a $1.7 billion in 2010.

Ministry of Finance said foreign investors were net sellers of Japanese equities in the week ending on April 19, with a net outflow of 27.9 billion yen. Foreign investors added net 1.57 trillion yen of stocks in the previous week.

The yen strengthened to 99.37 against one dollar ahead of the Bank of Japan’s two-day policy meeting ending on April 26.

The Nikkei 225 Stock Average gained 82.62 or 0.6% to 13,926.08 and the broader Topix Index rose 8.43 to 1,172.78.

Stocks in Review

Shiseido Co. fell 4% to 1,516 yen after the cosmetic company reported net loss of 14.7 billion in the year ending in March compared to the estimate of 10.5 billion yen profit.

The cosmetic maker said it will take a goodwill impairment loss of 28.6 billion yen after it paid $1.7 billion for Bare Escentuals three years ago.

Japan Tobacco Inc increased 1% to 3,500 yen after the company said sales in the March quarter increased 5% to 511.8 billion yen and net income fell 10% to 79.9 billion yen. The tobacco company also declared 92 yen a share dividend in the fiscal year compared to 68 yen.

The company estimated net income in the current fiscal year ending in March 2014 to increase to 415 billion yen.

Canon plunged 6.4%, the largest single-day fall in ten months after the company lifted its 2013 net income outlook to 290 billion yen, lower than 300 billion estimated by analysts.

Nomura increased 1.8% to 767 yen and Dai-Ichi Life Insurance slid 0.5%. Mitsui Fudosan rose 0.3% and Mitsubishi Estate Co added 0.9%.

Nomura is scheduled to release earnings tomorrow.

Toyota Motor Corp jumped 110 yen to 5,730 yen and Honda Motor Co. climbed 50 yen to 4,000 yen and Nissan Motor Co Ltd slipped 20 yen to 1,038 yen. Yamaha Motor Co Ltd gained 20 yen to 1,417 yen. Mitsubishi Motors Corp dropped 3 yen or 2.4% to 123 yen.

Honda is scheduled to release earnings tomorrow.

Nippon Steel fell 3 yen to 260 yen and JFE Holdings Inc rose 5 yen to 2,099 yen.

Sony slid 3 yen to 1,627. Canon Inc plunged 245 yen or 6.4% to 3,595 yen and Nikon dropped 82 yen to 2,167 yen. TDK Corp jumped 125 yen to 3,585 yen. NEC climbed 9 yen to 293 yen.

Nintendo Co. Ltd declined 660 yen or 5.5% to 11,370 yen after the game console maker reported second quarterly operating loss in a row and fell below its target of selling 4 million Wii U consoles.

Fanuc Corp. slipped 50 yen to 15,470 yen and Komatsu Ltd up 6 yen to 2,587 yen. Hitachi Construction Machinery Co added 18 yen to 2,277 yen.

Softbank Corp climbed 160 yen to 4,780 yen.

FamilyMart Co Ltd, the convenience chain operator rose 5 yen to 4,325 yen and Lawson lowered 20 yen to 7,510 yen. Ito En Ltd slumped 41 yen to 2,385 yen.

Seven & I Holdings Co rose 20 yen to 3,775 yen. Fast Retailing Co. added 50 yen to 34,100 yen and J. Front Retailing Co. Ltd fell 13 yen to 814 yen.

Mitsubishi UFJ Financial Group rose 14 yen to 660 yen and Sumitomo Mitsui Financial Group climbed 145 yen to 4,600 yen. Dai-Ichi Life slid 0.5% to 133,400 yen. Nomura Holdings, Inc increased 14 yen to 767.