TOKYO: Japan’s Nikkei share average fell on Monday as domestic firms’ dim outlook hurt sentiment, although Sony jumped on posting a 73% rise in quarterly profit.
The Nikkei fell 0.39% to 39,347.79 by the midday break, while the broader Topix was down 0.34% to 2,732.86.
“A significant number of companies revised down their outlook.
That negative surprise has made investors cautious about buying local stocks,“ said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“The market is awaiting the outcome of SoftBank (Group) and banks to confirm the outlook trend.”
Results of Honda Motor, which reported a surprise 15% drop in second-quarter operating profit last week, was particularly a big surprise, said Kamada.
The stock fell 1% on Monday.
Nissan tanked for a second session, falling 4.72% after announcing last week it would cut 9,000 jobs and 20% of its manufacturing capacity as it struggles with sales in China and the United States.
Toyota slipped 0.15%. Uniqlo parent Fast Retailing fell 0.55% to become the biggest drag on the Nikkei, while chip-making equipment maker Tokyo Electron shed 1.16%.
Tech shares lead Japan’s Nikkei higher in choppy session
On the bright side, Sony jumped 5.81% after the audio equipment and game maker’s operating profit rose 73% in the July-September quarter. Suzuki Motor jumped 6.64% after raising its annual operating and net profit forecasts for the year to March 2025.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 34% rose, 62% fell and 3% were flat.
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