Tokyo stocks fell on Friday as some disappointing corporate earnings deflated investor spirits, but Nissan jumped on news it was buying a major stake in Mitsubishi Motors. The Japanese market got a weak lead from overseas as Wall Street and European bourses put in a lacklustre session, while a pick-up in the yen also hit exporters.
A rally in the currency has taken a bite out of Japan Inc's profits, with top automaker Toyota among the firms blaming the stronger yen for shrinking its bottom line. Toyota shares fell 1.78 percent to 5,454 yen. "There's an overall sense of concern toward earnings," Ayako Sera, a Sumitomo Mitsui market strategist, told Bloomberg News. "We've already seen earnings at exporters fall from effects from the yen," she said. "Of course, losses will widen if we see any more strength in the yen, so there's plenty of caution."
The benchmark Nikkei 225 index sank 1.41 percent, or 234.13 points, to 16,412.21 by the end of trading. It gained 0.19 percent over the week. The broader Topix index of all first-section shares dropped 1.28 percent, or 17.08 points, at 1,320.19. The index was up 1.68 percent over the week. Investors will be keeping an eye on US consumer prices and Japanese gross domestic product figures next week. E-commerce giant Rakuten dived 5.44 percent to 1,155 yen after it reported lower-than-expected profits. Energy explorer Inpex tumbled more than four percent to 811.2 yen after it forecast weaker sales and profits for the current fiscal year. Honda and Hitachi were among companies reporting results later Friday.
Nissan jumped 4.09 percent to 1,028.5 yen, as investors cheered news that it plans to buy a one-third stake in scandal-hit Mitsubishi Motors for $2.2 billion. Analysts said the new tie-up gives Nissan access to Mitsubishi's strong foothold in Southeast Asia and some key technology, including hybrids and minicars, which are hugely popular in Japan. However, Mitsubishi dropped 1.74 percent to 565 yen - after a 16 percent surge a day earlier on news of the Nissan deal - as transport ministry officials raided its headquarters. Officials said the company has not properly explained details of a fuel-economy testing scandal that plunged it into crisis.
Apple suppliers Japan Display plunged more than six percent and Alps Electric more than three percent after the iPhone maker's shares tumbled in US trade. In currency markets, the dollar edged lower to 108.63 yen from 109.00 yen on Thursday in New York.
Comments
Comments are closed.