Japan's Nikkei 225 Extended Weekly Losses; Lasertec Dropped 16%, Panasonic Jumped 8%

Akira Ito
01 Nov, 2024
Tokyo

Stock market indexes in Tokyo traded down and extended weekly losses following a sharp selloff on Wall Street in Thursday's trading. 

The Nikkei 225 Stock Average and the Topix index dropped 2% after tech stocks dropped as much as 5% in Tokyo. 

Market indexes in Tokyo were under pressure after Microsoft and Meta Platforms announced robust quarterly results, but their forward-looking statements dampened investor sentiment in New York.

Microsoft cautioned sales growth is likely to slow in the current quarter, and Meta Platforms said elevated investment in artificial intelligence is likely to impact its future earnings. 

Stocks were also under pressure after investors reassessed comments from Bank of Japan Governor Kazuo Ueda's less dovish comments during a press conference held at the end of a two-day policy meeting on Thursday.

The yen traded at 152.53 against the U.S. dollar as Governor Ueda left the door open for a possible rate increase in December, citing optimism about the global and domestic economies. 

The au jibun Bank Japan Manufacturing PMI index was revised higher to 49.2 in October from the preliminary reading of 49.0 and a final 49.7 in the previous month, S&P Global reported Friday. 

Factory activities declined for the fourth month in a row and fell at the fastest pace since March as business sentiment was nearly unchanged from September's 21-month low. 

 

Japan Stock Movers 

The Nikkei 225 index decreased 2.5% to 38,100.16, and the Topix index dropped 1.8% to 2,647.79. 

Tech stocks led the declines in Friday's trading and extended weekly losses. 

Advantest Corp. declined 4.2% to ¥8,767.0, Tokyo Electron dropped 3.9% to ¥22,485.0, Disco Corp. fell 3.8% to ¥42,770.0, and Renesas Electronics plunged 5.6% to ¥1,985.50. 

Lasertec plunged 16% to ¥19,630.0 after the company reported weak quarterly results and said it will no longer provide quarterly guidance, citing short-term volatility. 

Revenue in the September quarter declined 22.3% to 36.7 billion yen, net income attributable to shareholders rose 16% to 8.9 billion yen, and diluted earnings per share rose to 98.94 from 85.33 yen a year ago. 

The company reiterated its fiscal year sales estimate of 12.4% increase to 240 billion yen, net income attributable to shareholders to advance 25.3% to 74 billion yen, and net income per share of 820.52 yen. 

Sumitomo Mitsui Financial declined 1% to ¥3,239.0, Mitsubishi UFJ fell 0.5% to ¥1,620.50, and Mizuho Financial decreased 0.1% to ¥3,210.0. 

Seven & I Holdings declined 1.8% to ¥2,159.50, Isetan Mitsukoshi dropped 2.8% to ¥2,257.50, and Fast Retailing Co. fell 2.9% to ¥48,140.0. 

Panasonic Holdings increased 8.5% to ¥1,343.50 after the electronics manufacturing firm reported a decline in profit in the first half, but the company reaffirmed its annual outlook.

Consolidated sales in the first-half ending in September increased 3.2% to 4.3 trillion yen from 4.1 trillion yen, net profit attributable to shareholders fell 34.5% to 188.9 billion yen, and diluted earnings per share fell to 80.90 from 123.51 yen a year earlier. 

The company guided full-year fiscal 2025 sales to increase 1.2% to 8.6 trillion yen, net income attributable to shareholders to decline by 30.2% to 310 billion yen, and earnings per share of 132.80 yen.