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Japan stocks down ahead of earnings results
By TOMOKO A. HOSAKA,Associated Press Writer AP - Monday, January 26
TOKYO - Japanese stocks lost ground in extremely thin trading Monday as investors awaited earnings results this week from Sony, Honda and other major companies.
The benchmark Nikkei 225 stock average ended down 63.11 points, or 0.81 percent, to 7,682.14 after flitting in and out of positive territory throughout the day. The broader Topix index fell 0.68 percent to 768.28.
Nervous investors are in no mood to buy ahead of the expected flurry of dismal third quarter figures and an ever-worsening outlook, said Masayoshi Okamoto, head of dealing at Jujiya Securities in Tokyo.
"They're hanging back and trying to figure out what to do next," he said. "(Earnings) will likely be worse than anyone imagined, and investors know that the situation will deteriorate even further in the January-March quarter."
Japan's companies, particularly exporters, have been battered hard by the global slump and are slashing production, jobs and profit forecasts.
Sony Corp., which last week projected its first annual net loss in 14 years, fell 3.05 percent to 1,747 yen. The electronics giant and gaming rival Nintendo Co. report October-December results Thursday, followed by Honda Motor Co. and Mizuho Financial Group Inc. on Friday.
Nintendo shed 3.26 percent to 29,070 yen, Honda lost 1.82 percent to 1,944 yen and Mizuho finished 2.83 percent lower at 207 yen.
Nomura Holdings Inc., which reports Tuesday, edged up 0.5 percent to 619 yen on hopes that in the third quarter, Japan's top brokerage had finished writing off costs related to its purchase of Lehman Brothers' operations in Asia, Europe and the Middle East.
The issue rose despite weekend news reports that Nomura's October-December losses could total a worse-than-expected 300 billion yen ($3.4 billion).
The Tokyo Stock Exchange was the only major Asian bourse open Monday. Markets in Hong Kong, mainland China, South Korea, Singapore and Taiwan were closed for the Lunar New Year holidays. Trading in Australia and India was also closed due to national holidays.
In currencies, the dollar was trading steady at 88.71 yen. The euro stood at $1.2925.
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