Japan's Nikkei falls as dim corporate outlook dulls Sony's shine

Daikin Industries

11/11/2024 03:19

TOKYO, Nov 11 (Reuters) - 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  .N225  fell 0.39% to 39,347.79 by the midday
break, while the broader Topix  .TOPX  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  7267.T , 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  7201.T  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  7203.T  slipped 0.15%.
    Uniqlo parent Fast Retailing  9983.T  fell 0.55% to become
the biggest drag on the Nikkei, while chip-making equipment
maker Tokyo Electron  8035.T  shed 1.16%.
    On the bright side, Sony  6758.T  jumped 5.81% after the
audio equipment and game maker's operating profit rose 73% in
the July-September quarter.
    Suzuki Motor  7269.T  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.

 (Reporting by Junko Fujita; Editing by Sumana Nandy)
 ((junko.fujita@thomsonreuters.com;))