Nikkei Extends Losses, Sony, Japan Tobacco, Nissan in Focus

Hiruki Nakamura
01 Nov, 2013
New York City

Stocks in Japan extended losses for the second day as investors digested latest batch of earnings reports. For the October month, the Nikkei declined 1.9% as investors weigh the impact of sales tax increase. Sony lowered its outlook. Nissan lifted revenues and earnings estimates.

[R]4:30 PM Tokyo – Stocks in Japan extended losses for the second day as investors digested latest batch of earnings reports. For the October month, the Nikkei declined 1.9% as investors weigh the impact of sales tax increase. Sony lowered its outlook. Nissan lifted revenues and earnings estimates. Kirin reported rising sales.[/R]

Stocks in Tokyo eased after a barrage of earnings yesterday as more than 140 companies released earnings.

Investors have turned cautious in Tokyo after a rally that lifted market indexes the most among the most developed nations.

However, recent gains have been muted and the market rally is petering out as economy faces rising sales tax and yen fall is held in check.

The Nikkei 225 Stock Average slipped 126.37 or 0.9% to 14,201.57 and the Topix fell 11.23 to 1,183.03.

For the week, Nikkei 225 gained 0.8% for the month the index dropped 1.9% and for the quarter increased 1.4%.

Nikkei in the year so far has gained 36.6%. The yen slipped to 97.95 against one dollar.

Stocks in Review

Toyota Motor Corp fell 30 yen to 6,330 yen and Honda Motor Co. rose 15 yen to 3,930 yen.

Nissan Motor Co Ltd dropped 21 yen to 961 yen and the auto maker reported net revenue climbed 17% to 4.75 trillion yen from 4.06 trillion yen a year ago.

Net income in the quarter jumped 6.8% to 189.8 billion yen compared to 177.7 billion yen and diluted earnings per share were nearly flat at 45.29 yen from the year earlier.

Nissan said operating profit for the quarter was 221.9 billion yen and the company sold 2.44 million vehicles in the first-half.

The company lifted outlook for the net revenue in fiscal year ending March to climb 11.2 trillion yen compared to 9.63 trillion yen in fiscal 2012 and net income to rise to 355 billion yen from 342.4 billion in a year earlier.

Sony tumbled 209 yen or 11.1% to 1,668 yen after the electronics and entertainment company lowered fiscal year net income to 30 billion yen from the earlier estimate of 50 billion yen in profit in August.

Softbank Corp jumped 250 yen to 7,550 yen and Fast Retailing Co. slumped 200 yen to 32,650 yen.

Japan Tobacco Inc rose 0.7% to 3,575 yen after the tobacco products maker net revenue climbed 9.6% to 1.16 trillion yen from 1.06 trillion yen a year ago.

Net income in the quarter surged 40.5% to 237.1 billion yen compared to 168.8 billion yen a year earlier.

The company lifted operating profit forecast for the year to 16 billion yen.

Kirin Holdings Company, Limited fell 0.5% to 1,425 yen after the Japan-based beverages and soft drinks maker reported sales in the nine-month ending in September jumped 4.5% to 1.68 trillion from 1.61 trillion a year ago.

Net income in the period surged above two-fold to 83.7 billion yen compared to 25.4 billion yen.

The beverages maker said its plan to acquire remaining stake of San Miguel Brewery Inc., currently Kirin holds about 48% in the brewer.