Nikkei slips 1.6 pct as Hitachi, earnings weigh
Japan's Nikkei average fell 1.6 percent on Monday as Hitachi Ltd (6501.T) plunged after it warned of a record $7.8 billion loss amid a deepening global recession, while a string of others with grim earnings outlooks also tumbled.
Panasonic Corp (6752.T) slid after news that it was set to book an annual $3.9 billion net loss, while Mizuho Financial Group (8411.T) sank after booking a $1.6 billion quarterly loss and further slashing its full-year forecast. [ID:nT305489] [ID:nT202016]
Major Japanese companies now expect to see a 62 pct tumble in net profit in the year ending in March from a year earlier, according the latest data from Thomson Reuters. That compared with a 38 percent decline forecast just a few weeks ago.
"This year the situation surrounding corporate earnings has continued to deteriorate every day and that has been worse than market expectations," said Yoshinori Nagano, chief strategist at Daiwa Asset Management.
"But the market as a whole seems to have factored in the dismal earnings trend on Friday and this morning as most major companies have finished reporting results."
He said the market's focus will once again shift to the U.S. government's economic steps and currency moves from corporate earnings announcements.
The benchmark Nikkei .N225 declined 125.90 points to 7,868.15, after falling more than 2 percent earlier.
It extended Friday's loss of 3.1 percent. In the month of January, it lost 9.8 percent -- its worst month since October, when it fell 24 percent. The broader Topix shed 2 percent to 778.44.
The dismal outlook for many companies was underlined by data showing the U.S. economy shrank 3.8 percent in the fourth quarter, its fastest pace in 27 years, though analysts had predicted an even steeper fall.
U.S. President Barack Obama, under pressure to move swiftly to get his nearly $900 billion economic recovery plan through Congress by mid-February, called Congressional leaders to a meeting on Monday to drive home his message of urgency. [ID:nN01420749]
"Given how bad economic fundamentals have gotten, the market is really hoping for stimulus plans," said Yutaka Miura, senior technical analyst at Shinko Securities.
HITACHI TUMBLES
Shares of Hitachi Ltd (6501.T) plunged 15.7 percent to 248 yen after the company warned of a record annual loss, which would be the worst ever by a Japanese manufacturer, due to weak sales, a firmer yen and costs to restructure its sprawling operations. [ID:nT249327]
Panasonic lost 3.2 percent to 1,064 yen after a source, who spoke on condition of anonymity because the information is not yet public, confirmed a report by the Yomiuri newspaper that Panasonic was facing an annual loss of 350 billion yen.
The loss would be Panasonic's biggest in six years.
Fujifilm Holdings Corp (4901.T) dropped 8.2 percent to 1,841 yen after the maker of digital cameras and electronics devices slashed its full-year profit outlook, hurt by a sharp fall in demand for flat panel display parts and mobile phone handset lens units.The broader Topix shed 2 percent to 778.44.
The dismal outlook for many companies was underlined by data showing the U.S. economy shrank 3.8 percent in the fourth quarter, its fastest pace in 27 years, though analysts had predicted an even steeper fall.
U.S. President Barack Obama, under pressure to move swiftly to get his nearly $900 billion economic recovery plan through Congress by mid-February, called Congressional leaders to a meeting on Monday to drive home his message of urgency. [ID:nN01420749]
"Given how bad economic fundamentals have gotten, the market is really hoping for stimulus plans," said Yutaka Miura, senior technical analyst at Shinko Securities.
HITACHI TUMBLES
Shares of Hitachi Ltd (6501.T) plunged 15.7 percent to 248 yen after the company warned of a record annual loss, which would be the worst ever by a Japanese manufacturer, due to weak sales, a firmer yen and costs to restructure its sprawling operations. [ID:nT249327]
Panasonic lost 3.2 percent to 1,064 yen after a source, who spoke on condition of anonymity because the information is not yet public, confirmed a report by the Yomiuri newspaper that Panasonic was facing an annual loss of 350 billion yen.
The loss would be Panasonic's biggest in six years.
Fujifilm Holdings Corp (4901.T) dropped 8.2 percent to 1,841 yen after the maker of digital cameras and electronics devices slashed its full-year profit outlook, hurt by a sharp fall in demand for flat panel display parts and mobile phone handset lens units.The broader Topix shed 2 percent to 778.44.
The dismal outlook for many companies was underlined by data showing the U.S. economy shrank 3.8 percent in the fourth quarter, its fastest pace in 27 years, though analysts had predicted an even steeper fall.
U.S. President Barack Obama, under pressure to move swiftly to get his nearly $900 billion economic recovery plan through Congress by mid-February, called Congressional leaders to a meeting on Monday to drive home his message of urgency. [ID:nN01420749]
"Given how bad economic fundamentals have gotten, the market is really hoping for stimulus plans," said Yutaka Miura, senior technical analyst at Shinko Securities.
HITACHI TUMBLES
Shares of Hitachi Ltd (6501.T) plunged 15.7 percent to 248 yen after the company warned of a record annual loss, which would be the worst ever by a Japanese manufacturer, due to weak sales, a firmer yen and costs to restructure its sprawling operations. [ID:nT249327]
Panasonic lost 3.2 percent to 1,064 yen after a source, who spoke on condition of anonymity because the information is not yet public, confirmed a report by the Yomiuri newspaper that Panasonic was facing an annual loss of 350 billion yen.
The loss would be Panasonic's biggest in six years.
Fujifilm Holdings Corp (4901.T) dropped 8.2 percent to 1,841 yen after the maker of digital cameras and electronics devices slashed its full-year profit outlook, hurt by a sharp fall in demand for flat panel display parts and mobile phone handset lens units.Worries that a U.S. 'bad bank' to soak up bad assets may not be set up pressured U.S. banks and pushed their Japanese peers lower.
Mizuho sank 5.7 percent to 214 yen, while Japan's top bank Mitsubishi UFJ Financial Group (8306.T) shed 4.9 percent to 485 yen.
But Daiichi Sankyo (4568.T) bucked the trend, rising 2.2 percent to 2,085 yen after U.S. regulatory staff on Friday recommended approval its anti-clotting drug prasugrel that it has jointly developed with Eli Lilly and Co (LLY.N). (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)
source : Reuters UK
