TOPIX FALLS TO 7-MONTH LOW
Japan stocks slip as subdued corporate earnings, pullback in global equities weigh on sentiment
JAPANESE stocks fell yesterday, with the broad Topix index retreating to a seven-month low as subdued corporate earnings and a pullback in global equities weighed on investor sentiment.
The Nikkei closed 2.67 per cent lower at 22,010.78, handing back the previous day’s modest gains, with overnight losses on Wall Street setting the tone early on. The index touched 21,993.07 in intraday trade, its lowest since August 16.
The broader Topix ended the day down 2.63 per cent at 1,650.72, its lowest close since March 26, with all 33 of its subindexes in negative territory.
Chinese shares, which had soared the previous session in a boost to the Nikkei, also slipped and pushed down Japanese and other Asian markets.
“Shares are susceptible to falling amid a steady stream of concerning geopolitical headlines. The start to the domestic earnings season has also been marked by several notable downward revisions and this is also weighing on sentiment,” said Takashi Hiroki, chief strategist at Monex Securities.
Concerns over Italy’s budget plan and Brexit negotiations added to the general atmosphere of caution.
Lixil Group Corp fell 15.7 per cent after the manufacturer and distributor of building materials and plumbing equipment slashed its net profit forecast for the year through March next year to 1.5 billion yen (RM55.4 million) from 50 billion yen.
Hitachi Chemical Co dropped 8.6 per cent after the company reported that its April-September net profit declined by 2.1 per cent to 16.41 billion yen.
Kawasaki Heavy Industries shed 1.3 per cent, extending its decline following a drop of more than nine per cent suffered the previous day after the industrial heavyweight slashed its forecasts for the current fiscal year.
Mitsubishi Heavy Industries retreated 2.6 per cent after public broadcaster NHK reported that the company was arranging 220 billion yen in financial support for its aircraft unit.
The few gainers included CE Holdings Co, which surged 12.7 per cent after the medical system information provider revised up its operating profit outlook for the year through September to 526 million yen from 400 million yen.