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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 -0.43%  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 -0.05% 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 +0.13% /zigman2/quotes/200537742/composite TM +0.59% , Honda Motor Co. /zigman2/quotes/200490352/delayed JP:7267 -1.66%   /zigman2/quotes/207173990/composite HMC +1.06% , Sony Corp. /zigman2/quotes/201361720/delayed JP:6758 -0.62%  and Softbank Corp. /zigman2/quotes/207303954/delayed JP:9984 -5.97%   /zigman2/quotes/202815238/composite SFTBF -3.95% 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 +0.0565%  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 +0.0878% 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 +3.53%   /zigman2/quotes/204149068/composite TOSYY +5.87%  gave up 5% and Japan Tobacco Inc. /zigman2/quotes/208255672/delayed JP:2914 -0.21%   /zigman2/quotes/208949046/composite JAPAF -1.85%  lost 4.9%, while JFE Holdings Inc. /zigman2/quotes/204336633/delayed JP:5411 -1.74%   /zigman2/quotes/203557603/composite JFEEF +6.02% slumped 6%, also weighed by a profit outlook that missed expectations.

Renesas Electronics Corp. /zigman2/quotes/203872935/delayed JP:6723 -0.21% /zigman2/quotes/201351352/composite RNECY +1.82% 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 +0.53% /zigman2/quotes/205540401/composite KDDIY +0.29%  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 -0.81%   /zigman2/quotes/207276383/composite NMR +1.48%  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 -0.11% /zigman2/quotes/209410825/composite FANUY +1.18% 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 +1.34%  ended 0.6% lower, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.36%  ended 0.1% higher after a choppy trading session. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.27%  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 3,246.53, -1.57, -0.05%
/zigman2/quotes/210598065/realtime DJIA 34,156.69, +265.67, +0.78%
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 +1.04%   /zigman2/quotes/202128064/composite BCMXY -0.32%  or BoCom, losing 1.8%, and China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 +1.39% /zigman2/quotes/201656413/composite CRBJF +4.76%  shed 2.9% in Hong Kong.

In Shanghai, BoCom /zigman2/quotes/207155262/delayed CN:601328 +0.21%  fell 1.9%, and real-estate major Gemdale Corp. /zigman2/quotes/208026094/delayed CN:600383 -0.21%  stumbled 4.2%.

Shares of Evolution Mining Ltd. /zigman2/quotes/206059650/delayed AU:EVN -0.62% /zigman2/quotes/202081844/composite CAHPF +3.90% 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
27,566.95
-118.52 -0.43%
Volume: 0.00
Feb. 8, 2023 1:12p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,246.53
-1.57 -0.05%
Volume: 13.63B
Feb. 8, 2023 12:17p
loading...
/zigman2/quotes/203803129/delayed
JP : Japan: Tokyo
¥ 1,899.50
+2.50 +0.13%
Volume: 7.41M
Feb. 8, 2023 1:12p
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10.48
Dividend Yield
2.79%
Market Cap
¥26503.46 billion
Rev. per Employee
¥90.14M
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/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 144.64
+0.85 +0.59%
Volume: 166,906
Feb. 7, 2023 4:00p
P/E Ratio
9.79
Dividend Yield
2.43%
Market Cap
$199.48 billion
Rev. per Employee
$724,875
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/zigman2/quotes/200490352/delayed
JP : Japan: Tokyo
¥ 3,206.00
-54.00 -1.66%
Volume: 2.43M
Feb. 8, 2023 1:12p
P/E Ratio
8.36
Dividend Yield
3.74%
Market Cap
¥5615.36 billion
Rev. per Employee
¥76.70M
loading...
/zigman2/quotes/207173990/composite
US : U.S.: NYSE
$ 24.86
+0.26 +1.06%
Volume: 996,591
Feb. 7, 2023 4:00p
P/E Ratio
8.05
Dividend Yield
3.09%
Market Cap
$42.27 billion
Rev. per Employee
$617,627
loading...
/zigman2/quotes/201361720/delayed
JP : Japan: Tokyo
¥ 11,980.00
-75.00 -0.62%
Volume: 2.03M
Feb. 8, 2023 1:12p
P/E Ratio
16.18
Dividend Yield
0.63%
Market Cap
¥14902.05 billion
Rev. per Employee
¥98.63M
loading...
/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,894.00
-374.00 -5.97%
Volume: 14.93M
Feb. 8, 2023 1:12p
P/E Ratio
N/A
Dividend Yield
0.75%
Market Cap
¥9994.72 billion
Rev. per Employee
¥121.97M
loading...
/zigman2/quotes/202815238/composite
US : U.S.: OTC
$ 45.50
-1.87 -3.95%
Volume: 690.00
Feb. 7, 2023 11:02a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$75.23 billion
Rev. per Employee
$993,721
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
131.1580
+0.0740 +0.0565%
Volume: 0.0000
Feb. 7, 2023 11:32p
loading...
/zigman2/quotes/210561215/realtime/sampled
US : Tullett Prebon
140.7700
+0.1234 +0.0878%
Volume: 0.0000
Feb. 7, 2023 11:32p
loading...
/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 4,663.00
+159.00 +3.53%
Volume: 3.56M
Feb. 8, 2023 1:12p
P/E Ratio
8.62
Dividend Yield
6.22%
Market Cap
¥1925.76 billion
Rev. per Employee
¥29.13M
loading...
/zigman2/quotes/204149068/composite
US : U.S.: OTC
$ 17.78
+0.99 +5.87%
Volume: 34,812
Feb. 7, 2023 3:55p
P/E Ratio
8.10
Dividend Yield
4.44%
Market Cap
$14.49 billion
Rev. per Employee
$236,051
loading...
/zigman2/quotes/208255672/delayed
JP : Japan: Tokyo
¥ 2,640.00
-5.50 -0.21%
Volume: 1.84M
Feb. 8, 2023 1:12p
P/E Ratio
11.62
Dividend Yield
7.12%
Market Cap
¥4677.64 billion
Rev. per Employee
¥46.36M
loading...
/zigman2/quotes/208949046/composite
US : U.S.: OTC
$ 20.12
-0.38 -1.85%
Volume: 100.00
Feb. 7, 2023 12:45p
P/E Ratio
11.33
Dividend Yield
N/A
Market Cap
$36.53 billion
Rev. per Employee
$371,121
loading...
/zigman2/quotes/204336633/delayed
JP : Japan: Tokyo
¥ 1,529.00
-27.00 -1.74%
Volume: 4.89M
Feb. 8, 2023 1:12p
P/E Ratio
4.22
Dividend Yield
5.23%
Market Cap
¥978.85 billion
Rev. per Employee
¥80.51M
loading...
/zigman2/quotes/203557603/composite
US : U.S.: OTC
$ 11.45
+0.65 +6.02%
Volume: 0.00
Jan. 3, 2023 12:22p
P/E Ratio
4.04
Dividend Yield
N/A
Market Cap
$6.76 billion
Rev. per Employee
$614,900
loading...
/zigman2/quotes/203872935/delayed
JP : Japan: Tokyo
¥ 1,413.50
-3.00 -0.21%
Volume: 4.13M
Feb. 8, 2023 1:12p
P/E Ratio
11.43
Dividend Yield
N/A
Market Cap
¥2502.96 billion
Rev. per Employee
¥67.97M
loading...
/zigman2/quotes/201351352/composite
US : U.S.: OTC
$ 5.32
+0.10 +1.82%
Volume: 21,657
Feb. 7, 2023 3:46p
P/E Ratio
10.76
Dividend Yield
N/A
Market Cap
$18.84 billion
Rev. per Employee
$545,983
loading...
/zigman2/quotes/204923990/delayed
JP : Japan: Tokyo
¥ 3,989.00
+21.00 +0.53%
Volume: 1.42M
Feb. 8, 2023 1:12p
P/E Ratio
13.47
Dividend Yield
3.38%
Market Cap
¥8708.01 billion
Rev. per Employee
¥111.55M
loading...
/zigman2/quotes/205540401/composite
US : U.S.: OTC
$ 15.04
+0.04 +0.29%
Volume: 125,830
Feb. 7, 2023 3:54p
P/E Ratio
13.42
Dividend Yield
2.27%
Market Cap
$65.54 billion
Rev. per Employee
$879,994
loading...
/zigman2/quotes/206251373/delayed
JP : Japan: Tokyo
¥ 536.30
-4.40 -0.81%
Volume: 3.95M
Feb. 8, 2023 1:12p
P/E Ratio
14.37
Dividend Yield
3.54%
Market Cap
¥1627.01 billion
Rev. per Employee
¥79.82M
loading...
/zigman2/quotes/207276383/composite
US : U.S.: NYSE
$ 4.11
+0.06 +1.48%
Volume: 570,112
Feb. 7, 2023 4:10p
P/E Ratio
14.67
Dividend Yield
3.09%
Market Cap
$12.25 billion
Rev. per Employee
$600,600
loading...
/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 23,055.00
-25.00 -0.11%
Volume: 278,700
Feb. 8, 2023 1:12p
P/E Ratio
26.53
Dividend Yield
2.18%
Market Cap
¥4433.04 billion
Rev. per Employee
¥95.55M
loading...
/zigman2/quotes/209410825/composite
US : U.S.: OTC
$ 17.54
+0.21 +1.18%
Volume: 124,373
Feb. 7, 2023 3:55p
P/E Ratio
26.54
Dividend Yield
1.52%
Market Cap
$33.37 billion
Rev. per Employee
$728,654
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,484.52
+32.81 +1.34%
Volume: 281,859
Feb. 8, 2023 1:12p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,531.40
+27.30 +0.36%
Volume: 429,248
Feb. 8, 2023 3:12p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
21,356.64
+57.94 +0.27%
Volume: 920,241
Feb. 8, 2023 12:05p
loading...
/zigman2/quotes/203442771/delayed
HK : Hong Kong
$ 4.85
+0.05 +1.04%
Volume: 3.25M
Feb. 8, 2023 11:58a
P/E Ratio
3.31
Dividend Yield
8.58%
Market Cap
$386.75 billion
Rev. per Employee
$6.90M
loading...
/zigman2/quotes/202128064/composite
US : U.S.: OTC
$ 15.60
-0.05 -0.32%
Volume: 23.00
Jan. 26, 2023 9:43a
P/E Ratio
3.33
Dividend Yield
7.33%
Market Cap
$49.58 billion
Rev. per Employee
$881,790
loading...
/zigman2/quotes/202417326/delayed
HK : Hong Kong
$ 36.60
+0.50 +1.39%
Volume: 1.49M
Feb. 8, 2023 11:59a
P/E Ratio
7.22
Dividend Yield
4.62%
Market Cap
$256.71 billion
Rev. per Employee
$5.19M
loading...
/zigman2/quotes/201656413/composite
US : U.S.: OTC
$ 4.40
+0.20 +4.76%
Volume: 0.00
Dec. 20, 2022 3:49p
P/E Ratio
6.77
Dividend Yield
N/A
Market Cap
$31.09 billion
Rev. per Employee
$665,352
loading...
/zigman2/quotes/207155262/delayed
CN : China: Shanghai
¥ 4.86
+0.01 +0.21%
Volume: 31.22M
Feb. 8, 2023 11:29a
P/E Ratio
N/A
Dividend Yield
7.30%
Market Cap
¥334.36 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208026094/delayed
CN : China: Shanghai
¥ 9.55
-0.02 -0.21%
Volume: 34.39M
Feb. 8, 2023 11:30a
P/E Ratio
4.57
Dividend Yield
6.60%
Market Cap
¥41.81 billion
Rev. per Employee
¥1.97M
loading...
/zigman2/quotes/206059650/delayed
AU : Australia: Sydney
$ 3.23
-0.02 -0.62%
Volume: 4.94M
Feb. 8, 2023 3:12p
P/E Ratio
18.27
Dividend Yield
1.86%
Market Cap
$5.93 billion
Rev. per Employee
$1.03M
loading...
/zigman2/quotes/202081844/composite
US : U.S.: OTC
$ 2.27
+0.09 +3.90%
Volume: 5,000
Feb. 7, 2023 3:53p
P/E Ratio
17.74
Dividend Yield
N/A
Market Cap
$4.07 billion
Rev. per Employee
$748,734
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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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