Nikkei in Holding Pattern; Mazda and Mitsubhi Motors Drop

Hiruki Nakamura
27 Apr, 2015
New York City

Stocks in Tokyo lacked direction ahead of central bankers meeting in Japan and the U.S. and the beginning of Golden Week holiday. Mazda Motors eased on weaker profit outlook and Mitsubishi Motors said operating profit is expected to decline 8% in the current fiscal year.

[R]4:30 PM Tokyo – Stocks in Tokyo lacked direction ahead of central bankers meeting in Japan and the U.S. and the beginning of Golden Week holiday. Mazda Motors eased on weaker profit outlook and Mitsubishi Motors said operating profit is expected to decline 8% in the current fiscal year.[/R]

In volatile trading, market indexes in Tokyo lacked direction and at closed slipped ahead of central bankers meeting in Tokyo and in Washington, D.C.

Stocks were in a holding pattern ahead of corporate earnings announcements and Bank of Japan is expected to keep its bond buying program intact.

Market trading is likely to be subdued ahead of Golden Week holidays starting on Wednesday.

The Nikkei 225 Stock Average slipped 36.72 or 0.2% to 19,983.32 and the broader Topix index edged up 0.23 to 1,619.07.

The yen closed at 119.32 against a dollar.

Stocks in Review

Komatsu Ltd rose 0.1% to 2,560.50 yen after the construction machinery and vehicles maker reported net sales in the year ending in March increased 1.3% to 1.98 trillion yen from 1.95 trillion yen in a year ago period.

Net income in the year declined 3.5% to 154 billion yen compared to 159.52 billion yen and diluted earnings per share slumped to 161.86 yen from 167.18 yen in the same period a year ago.

The industrial machinery maker forecasted revenues for the year to plunge 5% to 1.88 trillion yen and net income to plummet 10.4% to 138 billion yen.

Mazda Motor Corporation edged up 0.1% to 2,423 yen after the automaker reported revenues in the year ending in March climbed 12.7% to 3.03 trillion yen from 2.69 trillion yen in a year ago period.

Net income in the year surged 17% to 158.81 billion yen compared to 135.70 billion yen and earnings per share jumped to 265.64 yen from 226.99 yen in the same period a year ago.

The company forecasted net sales for the first-half ending in September to soar 1.60 trillion yen and net income to plunge 35.7% to 60 billion yen.

The company forecasted net sales for the year to jump 7.1% to 3.25 trillion yen and net income to decline 11.8% to 140 billion yen.

Shiseido Company, Limited plunged 6% to 2,237.50 yen after the cosmetics, toiletries, beauty products maker said revenues in the year ending in March jumped 2.1% to 777.7 billion yen from 762 billion yen in a year ago period.

Net income in the year soared 28.8% to 33.07 billion yen compared to 26.01 billion yen and diluted earnings per share increased to 84.30 yen from 65.54 yen in the same period a year ago.

Tokyo Electron Ltd declined 3.6% to 7,697 yen after the industrial electronic products maker reported net sales in the year ending in March edged up 0.2% to 613.12 billion yen from 612.17 billion yen in a year ago period.

Net in the year swung to profit 401.08 billion yen compared to a loss of 108.31 billion yen and diluted earnings per share declined to 120.16 yen from 104.29 yen in the same period a year ago.

The company forecasted net sales for the year to jump to 675 billion yen and net income to tumble to 79 billion yen.

Tokyo Electron and the U.S.-based Applied Materials Inc are in the process of merging two companies in a deal worth $10 billion.

Mitsubishi Chemical Holdings Corp climbed 3.9% to 774.10 yen after the Nikkei news reported resin, compound, fiber and inorganic chemicals maker’s sales for the year ending in March is estimated to jump 5% to 3.68 trillion yen and net profit of about 60 billion yen.

Operating profit is expected to surge 30% to 220 billion yen.

Sony Corporation gained 1.5% to 3,729 yen after the Nikkei daily said electronic equipments maker’s operating profit for the year ending in March 2016 to more than quadruple to around 300 billion yen.