TOKYO: The benchmark Nikkei average dropped 0.6 percent and the broader Topix fell 0.7 percent on Wednesday.
The following stocks were on the move:
Kao Corp was down 5 percent at 2,019 yen having earlier fallen to its lowest intraday level since Sept. 8 after Nomura cut its recommendation on the cosmetics and toiletries company to "neutral" from "buy" and its target price to 2,400 yen from 2,700 yen.
Nomura analyst Keiko Yamaguchi had expected profit growth to be "driven by structural reforms in the domestic cosmetics business paired with global expansion and higher product prices in the chemicals business", but she said benefits from those reforms were offset by investment in the household products business's operations.
Nomura also took into consideration declines in raw material prices and the increased risk of worse-than-anticipated demand for autos and electronic materials in the chemicals business.
ELPIDA RECOVERS FROM SLIDE AFTER DEUTSCHE CUT
Elpida Memory Inc shares were up 0.6 percent at 494 yen at the midday trading break, after falling as much as 2.9 percent in the morning session after Deutsche Securities cut its recommendation on the chip manufacturer to "hold" from "buy".
"Improvement in the supply/demand balance we had previously anticipated now appears unlikely because makers are maintaining high output levels and PC shipments could fall," Deutsche analyst Takeo Miyamoto wrote.
NIDEC JUMPS AFTER KEEPING PROFIT OUTLOOK
Nidec rose 7.5 percent to 6,560 yen, a level not seen since early September, after the maker of precision motors said on Tuesday it would maintain its annual operating profit forecast for the year to March at 90 billion yen despite the damage from floods in Thailand.
Market players had expected bigger damage from the flooding.
Nidec said its shipments of motors for hard disk drives dropped to just over 100 million units in October-December from above 140 million units in July-September due to supply chain disruption caused by the flood. But the company said it can restore production fully by January-March.
HITACHI UP AFTER FORECAST UPGRADE
Hitachi rose 2.4 percent to 419 yen after it lifted its operating profit outlook for the half-year to September to 170 billion yen from 100 billion yen due to improvements in its infrastructure-related businesses.
But it maintained its annual profit outlook, citing uncertainty in the global economy, the impact of floods in Thailand and the strong yen.
CANON SKIDS AFTER OUTLOOK CUT
Canon Inc skidded 1.9 percent to 3,425 yen after it cut its annual outlook due to the impact of the Thai floods and a strong yen.
"Despite a weaker earnings outlook, Canon remains defensive and the natural disaster and forex challenges it faced in 2011 should not recur," said analysts at CLSA, though they cut their rating on the issue to "outperform" from "buy," and lowered their target price to 4,000 yen from 4,100 yen.
Comments
Comments are closed for this article.