Japan’s Nikkei index reversed course to close slightly lower on Friday, as concerns regarding corporate profits increased following auto parts maker Denso, which supplies Toyota, cut its forecasts, while a stronger yen also affected exporters.
The Nikkei index closed down 0.05% at 27,801.64 points, following rising 0.7%, earlier in the session. The index declined by 0.4% during the week.
The broader Topix index also fell 0.44% to 1940.31 points, and recorded a weekly loss of 0.8%.
John Morita, general manager of research at Shipagin Asset Management, said the strong yen and Denso’s earnings had soured sentiment.
“Since Denso’s forecast was negative, we imagine that Toyota’s forecast may not be positive,” he added. Denso’s stock fell; One of the main suppliers of Toyota Motor, 5.2%, following the company cut its operating profit forecast for the current year by 14%, while Toyota’s share rose 0.56%, but its competitor Honda Motor’s share declined 1.43%. Hino Motors shares lost 6.53%, and Mitsubishi Motors 5.74%.
NEC’s stock fell 7.47%, becoming the worst performer on the Nikkei index, following the computer manufacturer suffered a loss in the second quarter,
While Advantest rose 4.11%, limiting the Nikkei’s decline following the chip-testing equipment maker raised its expectations and announced a share buyback.
85 shares rose on the Nikkei index, compared to a decline of 137. (Archyde.com)
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