Nikkei at 2-Week Low, Toyota Forecasts Flat Annual Sales

Hiruki Nakamura
28 Jul, 2015
New York City

Nikkei average in Tokyo declined following another day of route in commodities complex and in China indexes. Kao Corp and Tokyo Electron were in focus after quarterly results. Toyota Motor estimated flat annual global unit sales after first-half sales declined 1.5%.

[R]4:30 PM Tokyo – Nikkei average in Tokyo declined following another day of route in commodities complex and in China indexes. Kao Corp and Tokyo Electron were in focus after quarterly results. Toyota Motor estimated flat annual global unit sales after first-half sales declined 1.5%.[/R]

In volatile trading in Tokyo, market indexes declined following more losses in commodities and energy complex.

Investors digested latest earnings releases and looked at auto sales from Toyota and electronic equipment sales from Tokyo Electron and consumer products sales at Kao Corp.

The Nikkei 225 Stock Average fell 21.21 to 20,328.89 and the broader Topix index slid 8.44 to 1,629.46.

The yen closed at 123.67 against a dollar.

Investors also worried that the latest extended plunge in China market may spill over in Asia-wide and depress market sentiment in the weeks ahead.

Market indexes in Shanghai declined 1.7% a day after 8.5% plunge on Monday and indexes in Shenzhen dropped 7% in today’s session.

Indexes have now dropped more than 30% in the last four weeks after a jump of more than 150% in the twelve months to June.

Stocks in Review

Hitachi Metals, Ltd slipped 0.9% to 1,719 yen after the high-grade steel products maker said net sales in the first-quarter ending in June soared 19.2% to 265.11 billion yen from 222.37 billion yen in a year ago period.

Net income in the quarter climbed 72.5% to 35.23 billion yen compared to 20.43 billion yen and earnings per share jumped to 82.40 yen from 47.76 yen the same period a year ago.

For the year, Hitachi Metals forecasted net sales to advance 9.5% to 1.10 trillion yen and net income to increase 3.4% to 73 billion yen.

Hino Motors, Ltd jumped 2.7% to 1,471 yen after the Nikkei news said trucks maker’s sales for the first-quarter ending in June likely to edged up 1% to about 370 billion yen and operating profit to climb 8% to 25 billion yen.

Hino reaffirmed operating profit forecast for the year to jump 4% to 110 billion yen.

Japan Exchange Group Inc jumped 3.4% to 4,285 yen after the trading exchange operator reported net sales in the first-quarter ending in June climbed 12% to 27.80 billion yen from 24.83 billion yen in a year ago period.

Net income in the quarter surged 36% to 10.77 billion yen compared to 7.92 billion yen and earnings per share gained to 39.24 yen from 28.85 yen the same period a year ago.

The exchange operator forecasted net sales for the year to drop 5.8% to 100 billion yen and net income decrease 4.4% to 33.20 billion yen.

Kao Corporation increased 0.9% to 6,459 yen after the consumer products maker reported net sales in the first-half ending in June jumped 4.4% to 695.2 billion yen from 665.9 billion yen in a year ago period.

Net income in the period climbed 7.6% to 34 billion yen compared to 31.6 billion yen and diluted earnings per share jumped to 67.92 yen from 61.77 yen the same period a year ago.

Tokyo Electron Ltd gained 0.7% to 7,441 yen after the industrial electronic products maker reported net sales in the first-quarter ending in June fell 2.8% to 151.33 billion yen from 155.76 billion yen in a year ago period.

Net income in the quarter plummeted 39.2% to 11.84 billion yen compared to 19.48 billion yen and diluted earnings per share slumped to 65.88 yen from 109.22 yen the same period a year ago.

The company lifted net sales forecast for the first-half ending in September to jump 5.8% to 338.50 billion yen from earlier forecast of 320 billion yen and net income to soar 12.1% to 37 billion yen compared to previous estimate of about 33 billion yen.

For the year company lowered its estimated revenues to drop 4.4% to 645 billion yen compared to earlier guidance of 675 billion yen and net income to decline 16.5% to 66 billion yen from 79 billion yen.

Toyota Motor Corp slipped 1.3% to 8,077 yen after the auto maker forecasted global car sales for the fiscal year ending March 2016 of about 8.9 million compared to 8.97 million in a year ago period.

For the first-half car sales to drop 1.5% to 5.02 million units due to weak demand in emerging markets and higher taxes on small vehicles in Japan.