Japan stocks end lower as dour earnings hit construction firms
08/11/2021 06:50
TOKYO, Nov 8 (Reuters) - Japanese shares closed lower on
Monday as construction stocks weakened on some downbeat
earnings, while drugmakers lost their footing after Pfizer's
COVID-19 antiviral pill showed promising efficacy in a trial.
The Nikkei share average .N225 fell 0.35% to 29,507.05,
despite Wall Street finishing strong on Friday, slipping from a
one-month high hit on Thursday. The broader Topix .TOPX ended
0.30% lower at 2,035.22.
With Japanese corporate earnings season in full swing this
week, investors were hesitant to buy near the Nikkei's
psychological resistance at 30,000.
Obayashi Corp 1802.T dropped 9.2% after the builder
slashed its guidance sharply, hit in part by rising costs, while
rival Shimizu Corp 1803.T shed 7.7% on disappointing earnings.
urn:newsml:reuters.com:*:nXB0FUYYSZ urn:newsml:reuters.com:*:nXB1EONFEX
As a result, the construction sector .ICONS.T fell 1.9%.
Drugmaker Shionogi 4507.T lost 5.7% and Chugai
Pharmaceutical 4519.T declined 3.7% after rival Pfizer PFE.N
said its experimental pill cut by 89% the chance of
hospitalization or death from COVID-19. urn:newsml:reuters.com:*:nL1N2RW0N5
Mixi 2121.T sank by its daily limit, losing 18.2% after
the internet firm cut its earnings guidance sharply on poor
sales of its main game service. urn:newsml:reuters.com:*:nXB1HCYM8G
On the other hand, endoscope maker Olympus 7733.T jumped
6.0% on bumper earnings results, while Sega Sammy 6460.T rose
7.8% after the game company reported strong profits and
announced a share buyback. urn:newsml:reuters.com:*:nXB180M6IC urn:newsml:reuters.com:*:nXB0BTMPED urn:newsml:reuters.com:*:nFWN2RX0CD
Total net profits from Japanese companies that have so far
announced results have beaten consensus estimates, on average,
by 12%, said Nobuhiko Kuramochi, market strategist at Mizuho
Securities.
"But overall they aren't that impressive. And forward
earnings expectations have been almost flat in the past month,"
he said.
Airlines .IAIRL.T and train operators .IRAIL.T gained on
news of Pfizer's COVID-19 drug, as it added to hopes of economic
recovery amid a fall in infections at home. urn:newsml:reuters.com:*:nL1N2RZ02C
More than 1,500 companies are scheduled to announce
quarterly results this week, including SoftBank Group 9984.T
on Monday, Nissan Motor 7201.T on Tuesday and Tokyo Electron
8035.T on Friday.
(Reporting by Hideyuki Sano; Editing by Rashmi Aich and
Ramakrishnan M.)
((hideyuki.sano@thomsonreuters.com; +81 3 4520 1195;))