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(AFX UK Focus)
2009-10-28 01:20
Nikkei edges lower as techs sold, Honda jumps |
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TOKYO, Oct 28 (Reuters) - Japan's Nikkei stock average edged down 0.5 percent as Kyocera Corp and other tech shares slipped after weaker-than-expected U.S. consumer confidence data prompted investors to take profits in U.S. equities. But Honda Motor Co surged over 4 percent after it surprised with a near tripling of its annual profit forecasts that some said may yet be conservative, bumping it further ahead of rivals thanks to a dominant motorcycle business and line-up heavy in small cars. Other auto shares were strong as well, providing support for the market, analysts said. "The falls in New York indexes, in some cases for the third day in the row, raise the possibility of a true correction, with concern growing that it means a correction for share markets around the world," said Yutaka Miura, senior technical analyst at Mizuho Securities. "Trade today is likely to be a tug-of-war between this concern on the one hand and good factors for individual shares, such as the Honda results." The benchmark Nikkei shed 47.43 points to 10,162.84, a day after its biggest one-day percentage loss in three weeks, while the broader Topix lost 0.1 percent to 894.74. Analysts said support for the Nikkei was likely to hold solid around 10,120, which is where its 25-day moving average currently comes in. "Given the poor sentiment overseas, the Nikkei is actually not falling as much as might be expected, with support coming from expectations for earnings yet to come," said Hideyuki Ishiguro, a supervisor at the investment advisory department of Okasan Securities. The Dow Jones industrial average eked out a slim gain after IBM raised its share repurchase plan to $9.2 billion and shares of Exxon Mobil and Chevron rose, but the S&P 500 and Nasdaq posted their third straight day of losses. The Conference Board's index of consumer confidence fell to 47.7 in October, weaker than forecast and showing that consumers were increasingly concerned about job market conditions. Japan's earnings season has moved into high gear this week, with Nomura Holdings and Fujitsu Ltd both announcing after the bell. Honda gained 4.4 percent to 2,970 yen, outperforming the transport subindex, which rose 1.2 percent. Toyota Motor Corp rose 1.1 percent to 3,640 yen and Nissan Motor Co rose 1.2 percent to 671 yen. Shares of Canon and Ricoh dropped after they reported sharp falls in quarterly profit on sluggish copier demand as companies reined in spending. Canon slid 3.9 percent to 3,440 yen, while Ricoh edged down 0.2 percent to 1,254 yen. Both Canon and Ricoh stood by their annual operating income forecasts, which call for 62 percent and 46 percent slides in profit respectively, as they see no clear end to the current slump in office equipment demand.
Kyocera lost 1.5 percent to 7,860 yen and Advantest,
which makes chip testing equipment, lost 3.4 percent to 2,250
yen.
(Reporting by Elaine Lies; Editing by Edwina Gibbs)
((elaine.lies@thomsonreuters.com; +81 3 6441 1807; Reuters
Messaging:elaine.lies.reuters.com@reuters.net))
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