Nikkei in Tokyo Drops 0.9%, JFE Earnings Rise

Hiruki Nakamura
24 Apr, 2014
New York City

Nikkei Index declined 0.9% and the yen traded with a negative bias as investors awaited earnings from domestic companies. JFE Holdings, the steelmaker reported higher fiscal year sales and earnings.

[R]4:30 PM Tokyo – Nikkei Index declined 0.9% and the yen traded with a negative bias as investors awaited earnings from domestic companies. JFE Holdings, the steelmaker reported higher fiscal year sales and earnings.[/R]

Stocks in Tokyo eased in thin trading in the absence of local and international economic news. Investors focused on U.S. earnings and awaited earnings from domestic companies.

The Nikkei 225 Stock Average slipped 141.28 or 0.9% to 14,404.99 and the Topix index fell 8.91 to 1,164.90.

The yen closed down at 102.36 against the U.S. dollar.

Stocks in Review

Toyota Motor Corp dropped 80 yen to 5,469 yen. Honda Motor Co fell 41 yen to 3,435 yen. Nissan Motor Co Ltd slid 0.7% to 890 yen.

Sony slumped 60 yen to 1,859 yen.

Softbank Corp slipped 159 yen to 7,741 yen and in a regulatory filing in Tokyo the U.S. based third largest mutual fund manager Capital Group said it reduced its stake in the company to 6.7%, cut by half since June 2013

In June 2013, Capital Group held a stake of 13.6% in SoftBank, just before the company completed $22 billion acquisition of the U.S. mobile service provider Sprint Corp.

Fast Retailing Co Ltd declined 400 yen to 32,875 yen.

Canon Inc slid 0.03% to 3,217 yen after the digital camera and printers maker said net sales in the first-quarter ending in March jumped 6.3% to 868.3 billion yen from 816.7 billion yen a year ago period.

Net income in the quarter soared 16.4% to 47.6 billion yen compared to 40.9 billion yen and diluted earnings per share increased 18.7% to 42.11 yen from 35.49 yen a year earlier.

Separately, yesterday the company completed its acquisition of the U.S.-based Molecular Imprints, Inc.

The two companies reached an agreement in last February under which MI would become a wholly owned subsidiary of Canon and operate under a new name ” Canon Nanotechnologies, Inc.”

JFE Holdings, Inc rose 0.3% to 1,917 yen after the steel products seller reported net sales in the year ending in March climbed 15% to 3.67 trillion yen from 3.19 trillion yen a year ago.

Net income in the year surged 158.5% to 102.4 billion yen compared to 39.6 billion yen and earnings per share jumped to 177.44 yen from 71.20 yen a year earlier.