Japan’s Topix index rose as signs of stability in Chinese markets triggered a rebound in global equities, while poor earnings from Fanuc Corp. pushed the Nikkei 225 Stock Average lower for a fourth day.
The robotmaker plunged 11 percent after cutting its full-year profit forecast amid slowing demand from China. Eisai Co. climbed 1.8 percent after receiving a favorable regulatory ruling for one of its kidney cancer drugs. Koito Manufacturing Co. soared 6.9 percent after the headlights maker raised its operating profit targets.
The Topix added 0.3 percent to 1,633.94 at the close in Tokyo, reversing a loss of 0.2 percent. The Nikkei 225 slid 0.1 percent to 20,302.91, with Fanuc contributing 97 points to the gauge’s decline. The MSCI All Country World Index snapped a five-day losing streak on Tuesday.
The Topix traded at 15.7 times estimated earnings, compared with a multiple of 17.7 for the S&P 500.
Japanese stocks swung between gains and losses as investors weighed a reduced earnings forecast from Fanuc Corp. with signs of stability in Chinese markets, which triggered a rebound in global equities.
The robotmaker plunged 12 percent after cutting its full-year profit forecast amid slowing demand from China. Tokyo Electron Ltd sank 11 percent after the semiconductor-equipment maker lowered its sales and profit outlook on concerns about demand in the chip market. Eisai Co. jumped 2 percent after saying the Food & Drug Administration granted breakthrough status to one of its drugs for treating kidney cancer. Koito Manufacturing Co. soared 6.7 percent as the headlights maker raised its operating profit targets.
The Topix slipped 0.1 percent to 1,627.24 at the trading break in Tokyo, erasing gains of as much as 0.5 percent. The Nikkei 225 lost 0.6 percent to 20,210.96, with Fanuc contributing more than 100 points to the gauge’s decline.
Futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent. The underlying U.S. equity measure increased 1.2 percent on Tuesday after the Shanghai Composite Index pared losses of as much as 5.1 percent to close 1.7 percent lower. Strong earnings from Pfizer Inc. to Ford Motor Co. also pushed U.S. shares higher. The Shanghai gauge swung between gains and losses on Wednesday.
Source : Bloomberg