Monday, 03 August 2015 14:17
TOKYO: Tokyo’s benchmark stock index fell 0.18 percent Monday, after weak Chinese manufacturing data and US earnings hit sentiment, but automaker Honda’s shares surged after it reported a jump in profits.
The Nikkei 225 at the Tokyo Stock Exchange slipped 37.13 points to finish at 20,548.11, while the Topix index of all first-section shares was flat, edging up 0.08 points to 1,659.60.
“Declines in US shares on the back of weak earnings are a worry for investors here,” said Daiwa Securities analyst Hikaru Sato.
On Wall Street, stocks closed lower Friday following poor earnings from ExxonMobil and Chevron and a fall in oil prices.
The Dow Jones Industrial Average slipped 0.31 percent, while the broad-based S&P 500 dropped 0.22 percent. The tech-rich Nasdaq Composite Index edged down 0.01 percent.
Selling momentum picked up Monday after an independent survey showed a key gauge of Chinese manufacturing activity plunged to a two-year low in July, the latest data suggesting the world’s second-largest economy was struggling.
Also hitting sentiment, delegates negotiating a vast Pacific free-trade agreement — including Japan, the US and 10 other nations — said Friday they had failed to reach a final deal after several days of intense talks in Hawaii.
“Meanwhile, investors are buying shares of firms that have been showing positive results,” Sato said.
Japan is in the midst of earnings season with auto giant Toyota to release results on Tuesday.
In share trading, Honda soared 8.77 percent to 4,328.5 yen. After markets closed Friday, the automaker said net profit in the April-June period jumped nearly 20 percent, boosted by strong sales in North America and a weak yen.
Rival Toyota fell 0.64 percent to 8,200 yen, Sony was down 1.90 percent to 3,466 yen while banking giant Mitsubishi UFJ lost 1.78 percent at 884 yen.
Suzuki rose 3.40 percent to 4,467.5 yen, after US hedge fund Third Point said it had acquired a stake in the small car maker.
The fund has previously pressured other Japanese firms, including Sony and factory robotics giant Fanuc, to usher in shareholder-friendly reforms.
In currency markets, the dollar rose to 124.05 yen, from 123.91 yen in New York late Friday.
