Tokyo shares close 0.88pc lower
November 01, 2013 - 9:12:33 am
TOKYO: Tokyo stocks closed down 0.88 percent on Friday, with Sony shares diving 11 percent after the electronics giant slashed its full-year outlook.
The benchmark Nikkei 225 index shed 126.37 points to 14,201.57 by the close, after opening 0.52 percent higher.
The Topix index of all first-section shares was down 0.94 percent, or 11.23 points, to 1,183.03.
Sony booked a net loss of 15.8 billion yen ($160 million) for April-September and cut its forecast for the whole year to March by 40 percent after trading Thursday, blaming dwindling sales of digital cameras, personal computers and televisions.
The company's shares tumbled 11.13 percent to 1,668 yen Friday.
Japan's earnings reporting season hit its peak Thursday with many major companies releasing results to September and full-year outlooks.
After the market close, SoftBank said its quarterly net profit rose 44 percent on-year. SoftBank on Friday soared 3.42 percent to 7,550 yen.
Panasonic gained 6.19 percent at 1,046 yen after it doubled its full-year earnings forecast thanks to a weak yen and cost-cutting as it undergoes a huge overhaul.
Sharp also rose 1.03 percent at 292 yen.
Japan Airlines (JAL) fell 1.57 percent at 5,640 yen. JAL said Thursday its net profit for the six months to September dropped 17.8 percent to $833 million, as the strong yen and rising fuel costs bit into its bottom line.
"The market cheered upbeat announcements by SoftBank and Panasonic, but elsewhere announcements just invited profit taking after the recent gains," said Hiroichi Nishi, SMBC Nikko Securities general manager of equities.
Sony's slimmed down forecast was not a complete shock, but "the negative news came just when the overall market was weak", he added.
The dollar was at 97.95 yen Friday afternoon compared with 98.37 yen in New York Thursday afternoon.
The euro slumped Thursday after discouraging eurozone inflation data raised concerns about looming deflation in the single-currency bloc.
The euro bought $1.3553 and 132.77 yen Friday against $1.3579 and 133.60 yen in US trade.
US stocks fell Thursday following a flood of mixed earnings reports, with the Dow Jones Industrial Average closing down 0.47 percent at 15,545.75. (AFP)