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July 29, 2013, 4:11 a.m. EDT

Japan stocks stumble to lead broad Asian losses

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Japanese stocks ended at their lowest level in more than a month Monday as a strengthened yen weighed down exporters, while economic worries hurt mainland Chinese shares.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +1.59%  ended 3.3% down at 13,661.13 for its lowest finish since June 27, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -1.56% fell 1.7%. Both benchmarks had also dropped in the previous three sessions.


Tokyo Stock Exchange Enlarge Image
A firm yen keeps Japanese stocks on track for a fourth straight day of losses.

The losses in Tokyo came ahead of a busy week of earnings, with Toyota Motor Corp. /zigman2/quotes/203803129/delayed JP:7203 +1.35% /zigman2/quotes/200537742/composite TM +0.51% , Honda Motor Co. /zigman2/quotes/200490352/delayed JP:7267 +3.15%   /zigman2/quotes/207173990/composite HMC +1.56% , Sony Corp. /zigman2/quotes/201361720/delayed JP:6758 +2.34% /zigman2/quotes/208567357/composite SNE +3.68%  and Softbank Corp. /zigman2/quotes/207303954/delayed JP:9984 +0.84%   /zigman2/quotes/202815238/composite SFTBF +1.60% due to announce their quarterly results and update their outlook.

“Net income is expected to surge as much at 75% for multinationals and 33% for domestic-facing firms, ... with Abenomics sending the yen into a 20% deflation spiral over the last 12 months,” said IG Markets strategist Evan Lucas, referring to the economic policies initiated by Japanese Prime Minister Shinzo Abe.

The U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.2592%  has risen nearly 25% against the yen over the last 12 months, boosting Japanese exporters’ global competitiveness and repatriated profits. The euro /zigman2/quotes/210561215/realtime/sampled EURJPY -0.2219% has risen more than 34% against the Japanese currency over the last year.

On Monday, concerns over the U.S. dollar’s recent fall against the yen weighed on shares of companies with a large overseas exposure as the greenback slid under the ¥98-level.

Shares of Toshiba Corp. /zigman2/quotes/205628942/delayed JP:6502 -1.69%   /zigman2/quotes/204149068/composite TOSYY -1.75%  gave up 5% and Japan Tobacco Inc. /zigman2/quotes/208255672/delayed JP:2914 +0.28%   /zigman2/quotes/208949046/composite JAPAF +0.28%  lost 4.9%, while JFE Holdings Inc. /zigman2/quotes/204336633/delayed JP:5411 +4.99%   /zigman2/quotes/203557603/composite JFEEF -11.43% slumped 6%, also weighed by a profit outlook that missed expectations.

Renesas Electronics Corp. /zigman2/quotes/203872935/delayed JP:6723 +1.14% /zigman2/quotes/201351352/composite RNECY +0.70% plunged 8.7% after the Nikkei newspaper reported on Friday the company had firmed plans to shut down a chip foundry in Japan’s Yamagata prefecture.

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Telecommunications firm KDDI Corp. /zigman2/quotes/204923990/delayed JP:9433 +1.18% /zigman2/quotes/205540401/composite KDDIY +1.27%  ended 1.4% lower. The stock had risen more than 2% earlier in the day, after the Nikkei newspaper reported the company was expected to post a record-high operating profit, but reversed those gains in afternoon trading

Nomura Holdings Inc. /zigman2/quotes/206251373/delayed JP:8604 -0.36%   /zigman2/quotes/207276383/composite NMR -1.08%  slid 5.7% in the downbeat market, even as the broker reported a sharp surge in quarterly profits from the year-ago period. The stock is still up more than 50% so far in 2013.

Shares of Fanuc Corp. /zigman2/quotes/202054799/delayed JP:6954 +4.18% /zigman2/quotes/209410825/composite FANUY +3.56% rose 2.1% to rank among the few gainers, after the industrial automation firm reported better-than-forecast fiscal first-quarter results.

Meanwhile, official data released before the stock market’s open showed Japan’s retail sales climbed 1.6% in June from the year-ago month, though just short of forecasts.

Elsewhere in the region, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.84%  ended 0.6% lower, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.88%  ended 0.1% higher after a choppy trading session. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.01%  declined 0.5%.

The region’s losses came ahead of a slew of key economic data this week, including the outcome of the Federal Reserve’s and the European Central Bank’s policy meetings, and the Purchasing Managers’ Index indicators on Chinese factories.

The drop in Shanghai and Hong Kong followed data from the National Bureau of Statistics over the weekend, showing that Chinese industrial profits rose 6.3% in June from the same month a year earlier. The increase marked a sharp slowdown from a 15.5% rise in profits in May, according to a Bloomberg report.

/zigman2/quotes/210598127/delayed SHCOMP 3,361.30, -53.31, -1.56%
/zigman2/quotes/210598065/realtime DJIA 26,792.86, +150.27, +0.56%
Year-to-date percentage changes
The Shanghai Composite underperforms the Dow Jones Industrial Average

Crédit Agricole strategist Dariusz Kowalczyk said the slowdown in profits fits the picture of weakening momentum in the economy, but it may also prompt policy action to support the government’s targeted economic growth of 7.5% for 2013.

“The weaker the numbers now, the stronger the government’s response will be to revive growth,” Kowalczyk said in emailed comments.

The drop in Chinese equities also came after Beijing ordered China’s National Audit Office to conduct an urgent review of overall public debt.

Banks and property developers suffered declines, with Bank of Communications Co. /zigman2/quotes/203442771/delayed HK:3328 -1.74%   /zigman2/quotes/202128064/composite BCMXY +1.85%  or BoCom, losing 1.8%, and China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 -2.34% /zigman2/quotes/201656413/composite CRBJF +0.49%  shed 2.9% in Hong Kong.

In Shanghai, BoCom /zigman2/quotes/207155262/delayed CN:601328 -1.39%  fell 1.9%, and real-estate major Gemdale Corp. /zigman2/quotes/208026094/delayed CN:600383 -1.73%  stumbled 4.2%.

Shares of Evolution Mining Ltd. /zigman2/quotes/206059650/delayed AU:EVN +0.67% /zigman2/quotes/202081844/composite CAHPF +2.96% dropped 1.2% in Sydney on the gold producer’s planned write-down on assets following a drop in the metal’s prices.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,945.50
+358.49 +1.59%
Volume: 0.00
July 15, 2020 3:15p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,361.30
-53.31 -1.56%
Volume: 49.20B
July 15, 2020 3:01p
loading...
/zigman2/quotes/203803129/delayed
JP : Japan: Tokyo
¥ 6,835.00
+91.00 +1.35%
Volume: 4.75M
July 15, 2020 3:00p
P/E Ratio
9.41
Dividend Yield
3.22%
Market Cap
¥18654.93 billion
Rev. per Employee
¥81.43M
loading...
/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 127.08
+0.65 +0.51%
Volume: 80,961
July 15, 2020 1:02p
P/E Ratio
9.51
Dividend Yield
2.83%
Market Cap
$173.93 billion
Rev. per Employee
$737,463
loading...
/zigman2/quotes/200490352/delayed
JP : Japan: Tokyo
¥ 2,845.50
+87.00 +3.15%
Volume: 4.10M
July 15, 2020 3:00p
P/E Ratio
10.99
Dividend Yield
0.00%
Market Cap
¥4762.85 billion
Rev. per Employee
¥73.06M
loading...
/zigman2/quotes/207173990/composite
US : U.S.: NYSE
$ 26.36
+0.41 +1.56%
Volume: 492,175
July 15, 2020 1:03p
P/E Ratio
11.05
Dividend Yield
3.27%
Market Cap
$44.41 billion
Rev. per Employee
$661,808
loading...
/zigman2/quotes/201361720/delayed
JP : Japan: Tokyo
¥ 8,126.00
+186.00 +2.34%
Volume: 7.42M
July 15, 2020 3:00p
P/E Ratio
17.63
Dividend Yield
0.55%
Market Cap
¥9688.07 billion
Rev. per Employee
¥72.37M
loading...
/zigman2/quotes/208567357/composite
US : U.S.: NYSE
$ 77.26
+2.74 +3.68%
Volume: 1.20M
July 15, 2020 1:03p
P/E Ratio
18.22
Dividend Yield
0.39%
Market Cap
$90.33 billion
Rev. per Employee
$654,652
loading...
/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 6,497.00
+54.00 +0.84%
Volume: 23.92M
July 15, 2020 3:00p
P/E Ratio
43.59
Dividend Yield
0.68%
Market Cap
¥13324.10 billion
Rev. per Employee
¥126.96M
loading...
/zigman2/quotes/202815238/composite
US : U.S.: OTC
$ 60.96
+0.96 +1.60%
Volume: 5,049
July 15, 2020 12:01p
P/E Ratio
47.46
Dividend Yield
N/A
Market Cap
$124.23 billion
Rev. per Employee
$1.15M
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
106.9560
-0.2780 -0.2592%
Volume: 0.0000
July 15, 2020 1:03p
loading...
/zigman2/quotes/210561215/realtime/sampled
US : Tullett Prebon
121.9887
-0.2713 -0.2219%
Volume: 0.0000
July 15, 2020 1:03p
loading...
/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 3,480.00
-60.00 -1.69%
Volume: 1.10M
July 15, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
0.57%
Market Cap
¥1605.67 billion
Rev. per Employee
¥26.86M
loading...
/zigman2/quotes/204149068/composite
US : U.S.: OTC
$ 16.25
-0.29 -1.75%
Volume: 313.00
July 15, 2020 12:18p
P/E Ratio
N/A
Dividend Yield
0.39%
Market Cap
$14.97 billion
Rev. per Employee
$243,606
loading...
/zigman2/quotes/208255672/delayed
JP : Japan: Tokyo
¥ 1,957.00
+5.50 +0.28%
Volume: 4.47M
July 15, 2020 3:00p
P/E Ratio
11.07
Dividend Yield
7.87%
Market Cap
¥3461.91 billion
Rev. per Employee
¥34.64M
loading...
/zigman2/quotes/208949046/composite
US : U.S.: OTC
$ 18.09
+0.05 +0.28%
Volume: 234.00
July 15, 2020 12:36p
P/E Ratio
11.13
Dividend Yield
N/A
Market Cap
$32.28 billion
Rev. per Employee
$313,662
loading...
/zigman2/quotes/204336633/delayed
JP : Japan: Tokyo
¥ 821.00
+39.00 +4.99%
Volume: 7.57M
July 15, 2020 3:00p
P/E Ratio
N/A
Dividend Yield
2.44%
Market Cap
¥450.30 billion
Rev. per Employee
¥64.46M
loading...
/zigman2/quotes/203557603/composite
US : U.S.: OTC
$ 7.33
-0.95 -11.43%
Volume: 0.00
July 6, 2020 10:24a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.28 billion
Rev. per Employee
$583,723
loading...
/zigman2/quotes/203872935/delayed
JP : Japan: Tokyo
¥ 620.00
+7.00 +1.14%
Volume: 10.92M
July 15, 2020 3:00p
P/E Ratio
70.14
Dividend Yield
N/A
Market Cap
¥1051.15 billion
Rev. per Employee
¥36.92M
loading...
/zigman2/quotes/201351352/composite
US : U.S.: OTC
$ 2.86
+0.02 +0.70%
Volume: 4,684
July 15, 2020 12:11p
P/E Ratio
70.27
Dividend Yield
N/A
Market Cap
$9.80 billion
Rev. per Employee
$334,299
loading...
/zigman2/quotes/204923990/delayed
JP : Japan: Tokyo
¥ 3,344.00
+39.00 +1.18%
Volume: 4.04M
July 15, 2020 3:00p
P/E Ratio
12.14
Dividend Yield
3.59%
Market Cap
¥7432.00 billion
Rev. per Employee
¥130.16M
loading...
/zigman2/quotes/205540401/composite
US : U.S.: OTC
$ 15.57
+0.20 +1.27%
Volume: 28,400
July 15, 2020 12:48p
P/E Ratio
12.28
Dividend Yield
2.44%
Market Cap
$69.29 billion
Rev. per Employee
$1.18M
loading...
/zigman2/quotes/206251373/delayed
JP : Japan: Tokyo
¥ 496.30
-1.80 -0.36%
Volume: 15.98M
July 15, 2020 3:00p
P/E Ratio
7.75
Dividend Yield
3.18%
Market Cap
¥1513.52 billion
Rev. per Employee
¥65.89M
loading...
/zigman2/quotes/207276383/composite
US : U.S.: NYSE
$ 4.58
-0.05 -1.08%
Volume: 68,531
July 15, 2020 12:48p
P/E Ratio
7.73
Dividend Yield
3.52%
Market Cap
$14.11 billion
Rev. per Employee
$597,075
loading...
/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 21,070.00
+845.00 +4.18%
Volume: 1.21M
July 15, 2020 3:00p
P/E Ratio
55.19
Dividend Yield
N/A
Market Cap
¥3837.01 billion
Rev. per Employee
¥95.87M
loading...
/zigman2/quotes/209410825/composite
US : U.S.: OTC
$ 19.60
+0.67 +3.56%
Volume: 89,867
July 15, 2020 12:41p
P/E Ratio
55.88
Dividend Yield
1.02%
Market Cap
$35.77 billion
Rev. per Employee
$869,691
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,201.88
+18.27 +0.84%
Volume: 830,266
July 15, 2020 3:32p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,052.90
+111.80 +1.88%
Volume: 656,101
July 15, 2020 4:59p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
25,481.58
+3.69 +0.01%
Volume: 1.85M
July 15, 2020 4:08p
loading...
/zigman2/quotes/203442771/delayed
HK : Hong Kong
HK$ 4.51
-0.08 -1.74%
Volume: 43.14M
July 15, 2020 4:08p
P/E Ratio
3.84
Dividend Yield
7.65%
Market Cap
HK$378.72 billion
Rev. per Employee
HK$5.47M
loading...
/zigman2/quotes/202128064/composite
US : U.S.: OTC
$ 14.86
+0.27 +1.85%
Volume: 61.00
July 10, 2020 5:20p
P/E Ratio
4.22
Dividend Yield
6.43%
Market Cap
$51.60 billion
Rev. per Employee
$697,896
loading...
/zigman2/quotes/202417326/delayed
HK : Hong Kong
HK$ 33.45
-0.80 -2.34%
Volume: 13.15M
July 15, 2020 4:08p
P/E Ratio
7.18
Dividend Yield
3.50%
Market Cap
HK$244.23 billion
Rev. per Employee
HK$3.68M
loading...
/zigman2/quotes/201656413/composite
US : U.S.: OTC
$ 4.12
+0.02 +0.49%
Volume: 0.00
July 6, 2020 9:36a
P/E Ratio
6.92
Dividend Yield
N/A
Market Cap
$31.61 billion
Rev. per Employee
$470,019
loading...
/zigman2/quotes/207155262/delayed
CN : China: Shanghai
¥ 4.96
-0.07 -1.39%
Volume: 214.91M
July 15, 2020 3:00p
P/E Ratio
4.77
Dividend Yield
6.35%
Market Cap
¥342.96 billion
Rev. per Employee
¥4.56M
loading...
/zigman2/quotes/208026094/delayed
CN : China: Shanghai
¥ 14.75
-0.26 -1.73%
Volume: 63.04M
July 15, 2020 3:00p
P/E Ratio
6.75
Dividend Yield
4.54%
Market Cap
¥67.76 billion
Rev. per Employee
¥7.89M
loading...
/zigman2/quotes/206059650/delayed
AU : Australia: Sydney
$ 6.04
+0.04 +0.67%
Volume: 9.85M
July 15, 2020 4:10p
P/E Ratio
37.61
Dividend Yield
2.15%
Market Cap
$10.23 billion
Rev. per Employee
$1.20M
loading...
/zigman2/quotes/202081844/composite
US : U.S.: OTC
$ 4.25
+0.12 +2.96%
Volume: 2,265
July 15, 2020 11:34a
P/E Ratio
38.08
Dividend Yield
N/A
Market Cap
$7.12 billion
Rev. per Employee
$896,475
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Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

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