Views Article – Sharenet Wealth

Asia, News

Japan shares slip on weak earnings, caution ahead of U.S. jobs data

TOKYO, Aug 7 (Reuters) – Japanese shares fell on Friday as the market reacted to a string of disappointing earnings and forecasts, while investors also took a cautious stance ahead of the U.S. non-farm payroll data for July and a long weekend.

The benchmark Nikkei share average fell 0.64% to 22,273.62 by the midday break.

Japan stock markets will be closed on Monday for a public holiday for observing ‘Mountain Day’.

U.S. non-farm payroll due later in the day is widely expected to show jobs creation in the United States slowed in July from the previous month, indicating a resurgence in COVID-10 infections is undermining the world’s largest economy.

SUMCO Corp, which produces equipment for making semiconductors, slid 9.77% after reporting a 26.8% decline in its January-September net profit.

SUMCO’s fall dragged down its peer Advantest Corp by 4.04%, while Screen Holdings Co Ltd and Tokyo Electron Ltd lost 4.01% and 3.2%, respectively.

Shiseido Co Ltd slumped 9.3% after the cosmetics firm forecast a net loss and lower dividend for the full year.

Nikon Corp dipped 8.32% to its lowest since May 1995, as it forecast an operating loss of 75 billion yen ($710.56 million) for the fiscal year.

But not all earnings were bad, as game and electronic commerce industries saw a surge in demand from people staying at home due to the COVID-19 pandemic.

Nintendo Co Ltd rose above 2.42% after posting a five-fold jump in quarterly profit.

Square Enix Holdings Co Ltd spiked 13.87% and marked its record high, after the gaming company posted a 241.4% increase in its operating profit for the three-month period ended June 2020.

Mercari Inc also jumped 13.52% to its highest level since June 2018, as the flea market app operator logged a better-than-expected operating loss for the year ended June 30.

The broader Topix lost 0.23% to 1,546.32. ($1 = 105.5500 yen) (Reporting by Eimi Yamamitsu; Editing by Rashmi Aich)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.