Nikkei Falls 1.4% on Cautious Outlook from Toyota and Rising Yen

Hiruki Nakamura
05 Aug, 2013
New York City

Stocks in Tokyo halted a 2-day rally and the Nikkei index fell 1.4% as the yen gained. Investors sold stocks after weaker-than-expected U.S. jobs report on Friday and Toyota issued a cautious outlook despite a near record profit. Casio Computer quarterly net rose 31%. Hitachi Zosen net loss widened.

[R]4:30 PM Tokyo – Stocks in Tokyo halted a 2-day rally and the Nikkei index fell 1.4% as the yen gained. Investors sold stocks after weaker-than-expected U.S. jobs report on Friday and Toyota issued a cautious outlook despite a near record profit. Casio Computer quarterly net rose 31%. Hitachi Zosen net loss widened.[/R]

Stocks in Tokyo edged lower after rising for two days when the Nikkei index added 5.8%. Investors were also cautious after the yen strengthened and the latest jobs report in the U.S. was deemed weaker than expected and Toyota issued a cautious outlook.

The Nikkei 225 Stock Average declined 208.12 or 1.4% to 14,258.04 and the Topix dropped 11.43 or 0.9% to 1,184.74.

The yen gained in Tokyo trading to one-month high to close at 98.63 against one dollar.

Investors were expecting higher earnings from Toyota would set the tone for the broader market direction after the automaker said quarterly net soared 94% on weaker earnings.

However, the world’s second-largest auto maker announced a cautious outlook and highlighted the weakness in emerging markets including Thailand and worried that the recent currency move may not hold.

Stocks in Review

Toyota Motor Corp slipped 70 yen to 6,360 yen, Honda Motor Co. rose 10 yen to 3,720 yen. Nissan Motor Co Ltd fell 4 yen to 1,067 yen.

Sony gained 14 yen to 2,137 yen electronic products maker set to reject a proposal to spin off its entertainment division, as early as in next week.

Canon Inc added 20 yen to 3,175 yen and Nikon increased 17 yen to 2,066 yen.

Fanuc Corp dropped 330 yen to 15,660 yen and Softbank Corp slumped 130 yen to 6,770 yen.

Seven & I Holdings Co slid 45 yen to 3,830 yen and Fast Retailing Co. declined 900 to 34,700 yen.

Mitsubishi UFJ Financial Group slid 9 yen to 634 yen and Sumitomo Mitsui Financial Group slipped 65 yen to 4,715 yen.

Casio Computer Co., Ltd. climbed 5% to 972 yen after the electronic products maker reported net profit in the first quarter ending in June soared 31% to 2.1 billion yen.

Hitachi Zosen Corporation declined 5.7% to 149 yen after the environmental equipment maker said first quarter net loss widened to 4.4 billion yen.

Mitsumi Electric Co., Ltd plunged 5.9% to 729 yen after the electrical and communications components maker reported net loss in the first quarter of 1.7 billion yen.

Marubeni Corporation slid 0.7% to 714 yen after the power and agriculture trader plan to acquire about 25% stake in Mainstream Renewable Power Ltd. and will take 50% partnership with subsidiary of GDF Suez SA. Marubeni will pay as much as €100 million.