Japan Shares Decline as Technology Stocks Drop, Banks Advance

  • Canon, Nintendo, Murata slide after tech rout resumes in U.S.
  • ‘Investors are likely to start worrying’: Ichiyoshi’s Akino

Shares in Tokyo slipped for the first time in four days, as declines by technology shares overshadowed an advance in bank stocks.

Canon Inc., Nintendo Co. and Murata Manufacturing Co. were among the biggest drags on the benchmark Topix index, following a retreat by U.S. technology shares Tuesday as the S&P 500 Index posted its biggest loss in more than a month and the Nasdaq 100 Stock Index fell 1.8 percent. Trading volume on the Topix index was 10 percent above the 30-day average.

“With U.S. technology shares declining, investors are likely to start worrying about a drop in the thus far high-performing growth stocks,” said Mitsushige Akino, a Tokyo-based executive officer at Ichiyoshi Asset Management Co.

Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc. supported the Topix, following Federal Reserve Chair Janet Yellen’s remarks Tuesday that signaled the U.S. economy can withstand higher interest rates.

The 14-day RSI on the Topix rose to 67 on Tuesday, near the level of 70 that some traders see as a sign that shares are overbought.

Summary

  • Topix -0.3% to 1,614.37 at the close in Tokyo
  • Nikkei 225 -0.5% at 20,130.41
  • Yen +0.2% at 112.13 per dollar after weakening 1% in past two days 
  • Canon -3.2%, Murata Manufacturing -2.5%, Nintendo -3.7%, Keyence -1.4%
  • Happiness and D +4.9%; reports 9-month parent operating profit up 122% y/y to 504m yen
  • Hiday Hidaka +5.2%; Reports parent 1Q operating profit +14% y/y to 1.4b yen
  • Himaraya +7.9%; Reports 9-month consolidated operating profit +82% y/y to 664m yen
  • Mitsubishi UFJ Financial +2.6%, Sumitomo Mitsui Financial +2.2%, Mizuho Financial +3%
  • Pickles -10%; reports 1Q consolidated operating profit -25% y/y to 362m yen
  • Right On -2.6%; Reports 9-month parent operating losses of 635m yen vs 4.5b yen operating profit last yr
  • Sagami -3.2%; reports 1Q consolidated operating profit fell 17% y/y; maintains full-year forecast
  • Isetan Mitsukoshi -2%; cut to sell at Goldman Sachs

For more on Japan markets:
Japan’s Corporate Chiefs Face More Scrutiny Over Retirement Gigs
Kuroda Should Serve Another Term to Finish the Job, Ally Says
KKR Will Have to Lift Hitachi Kokusai Offer, Religare Says (1)
Toshiba Deal Repeats Japan Inc.’s Old Mistakes: Michael Schuman
Nikkei Bears Gather With Bets on 3x Inverse Leveraged Warrant

— With assistance by Yuko Takeo

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