April 26, 2019 / 6:16 AM / 3 months ago

Nikkei posts 4th weekly gain ahead of long holiday

* Investors square positions ahead of 10-day holiday

* Anritsu ends down 12.8 pct, Nintendo, Zozo drop on earnings

* Investors uncertain on strength of China recovery

By Hideyuki Sano and Daniel Leussink

TOKYO, April 26 (Reuters) - Japan’s Nikkei fell on Friday following disappointing earnings from high-tech firms and as market players wound down for a 10-day holiday to celebrate the enthronement of Crown Prince Naruhito.

The Nikkei share average lost 0.22 percent to 22,258.73 points. For the week, the index rose 0.26 percent, its fourth straight week of gains.

Anritsu, one of the best performing shares in the past two years on hopes of 5G-related demand, tumbled 12.8 percent after its cautious earnings guidance disappointed investors.

The firm saw a 16 percent fall in net profits in the year to March to 7.5 billion yen ($67.17 million), about 8 percent below mean analysts forecast. Anritsu shares prices had hit 19-year highs last month, having tripled in over two years.

The poor results hit other shares that have benefited from 5G theme.

Advantest, which forecast a 54 percent fall in operating profits this financial year from record profits in the previous year, ended down 8.9 percent.

Weak guidance from U.S. chipmakers Intel and Xilinx dented growing optimism that the worst is over for the sector, which has been hit by concerns over Sino-U.S. trade wars.

“Judging from our hearings, the Chinese economy, including the semi-conductor sector, does appear to have bottomed out in January and February. But people are not sure how strong a recovery it will be,” said Tetsuro Ii, president of Commons Asset Management.

“Whether it will be a V-shaped recovery, or U-shaped or L-shaped, nobody really has a clear idea,” he said.

Nintendo closed 1.3 percent lower after the gaming giant offered conservative earnings guidance and urged caution on the roll-out of its Switch console in China.

Zozo was down 9.3 percent at the close as the market digested its latest earnings. The online fashion retailer said it expects profits to recover in the current fiscal year after booking its first-ever annual drop in earnings.

Shares of brokerage firms struggled after weak earnings, with Daiwa ending down 0.8 percent, while Nomura carved out a small gain, of 0.2 percent.

Many players were squaring positions ahead of the long holiday from April 27 through May 6, the longest market closure in modern history, not wanting to be hit by sudden moves in global markets during this period.

Among the bright spots was Hino Motors, which closed up 4.4 percent after the truck maker announced profit growth in the financial year that ended in March and the current year.

Kyocera ended 4.9 percent higher after the company gave upbeat guidance and raised its dividend payout ratio by 10 percentage point to 50 percent.

The broader Topix finished 0.15 percent lower at 1617.93 points. ($1 = 111.66 yen)

Editing by Kim Coghill

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below