Japan's Nikkei down on Toyota
08/05/2009 | 03:13 PM
TOKYO- Japan's Nikkei stock index fell Wednesday on profit-taking after hitting a 10-month high as investors sold auto shares on Toyota Motor Corp.'s report of a third consecutive quarterly loss.
The benchmark Nikkei 225 stock average lost 122.48 points, or 1.2 percent, to 10,252.53. The key stock index on Tuesday hit the highest closing level since October 6 on growing optimism about a global economic recovery.
The broader Topix declined 1 percent to 949.58, snapping a 13-day gaining streak.
"Investors locked in profits following recent gains. They also dumped auto stocks due to Toyota's poor earnings results," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.
The world's biggest automaker said Tuesday its net loss for the April-June quarter stood at 77.8 billion yen ($819 million), plunging into the red for the third consecutive quarters.
"Investors were downbeat about Toyota's loss given that its rival Honda reported a profit during the quarter," said Sato.
Toyota trimmed its forecast of red ink for the full year through March 2010 but in a sharp contrast Honda Motor Co. has raised its forecast for the full year to a 55 billion yen profit from 40 billion yen.
Apart from profit-taking and the Toyota factor, Sato said investors were reluctant to buy shares ahead of Friday's release of a US employment report for July.
Economists expect the Labor Department report will show the US jobless rate rose to 9.6 percent in July, up from 9.5 percent in June, the highest level in 26 years.
Toyota fell 1.2 percent to 3,980 yen. Honda declined 1.3 percent to 3,000 yen.
Nissan Motor Co. was down 1.9 percent at 681 yen.
Sony Corp. edged up 0.2 percent to 2,655 yen. Panasonic Corp. lost 2.6 percent to 1,468 yen.
In currencies, the dollar was trading at 94.98 yen in Tokyo Wednesday afternoon trade from 95.23 yen in New York late Tuesday.
The euro stood at $1.4377 from $1.4390.-AP
The benchmark Nikkei 225 stock average lost 122.48 points, or 1.2 percent, to 10,252.53. The key stock index on Tuesday hit the highest closing level since October 6 on growing optimism about a global economic recovery.
The broader Topix declined 1 percent to 949.58, snapping a 13-day gaining streak.
"Investors locked in profits following recent gains. They also dumped auto stocks due to Toyota's poor earnings results," said Masatoshi Sato, market analyst at Mizuho Investors Securities Co. Ltd.
The world's biggest automaker said Tuesday its net loss for the April-June quarter stood at 77.8 billion yen ($819 million), plunging into the red for the third consecutive quarters.
"Investors were downbeat about Toyota's loss given that its rival Honda reported a profit during the quarter," said Sato.
Toyota trimmed its forecast of red ink for the full year through March 2010 but in a sharp contrast Honda Motor Co. has raised its forecast for the full year to a 55 billion yen profit from 40 billion yen.
Apart from profit-taking and the Toyota factor, Sato said investors were reluctant to buy shares ahead of Friday's release of a US employment report for July.
Economists expect the Labor Department report will show the US jobless rate rose to 9.6 percent in July, up from 9.5 percent in June, the highest level in 26 years.
Toyota fell 1.2 percent to 3,980 yen. Honda declined 1.3 percent to 3,000 yen.
Nissan Motor Co. was down 1.9 percent at 681 yen.
Sony Corp. edged up 0.2 percent to 2,655 yen. Panasonic Corp. lost 2.6 percent to 1,468 yen.
In currencies, the dollar was trading at 94.98 yen in Tokyo Wednesday afternoon trade from 95.23 yen in New York late Tuesday.
The euro stood at $1.4377 from $1.4390.-AP
