TOKYO, Nov 10 (Businesshala) – Japanese stocks fell on Wednesday as rising raw material costs weighed on earnings results and dampened risk sentiment.
The Nikkei average closed 0.61% lower at 29,106.78, extending losses for the fourth straight session, while the broader Topix closed 0.54% at 2,007.96.
Sumitomo Rubber fell 13.1% and electronics firm Ellecom 10.6%, as both companies lowered their profit outlook on rising costs.
Beverage maker Kirin Holdings fell 6.23% after lowering quarterly results hit by coronavirus restrictions on movement.
However, analysts say the overall earnings picture is not bleak.
Nissan Motor jumped 7.51% after the carmaker raised its full-year operating profit outlook by a fifth, as its margins were boosted by new models and lower sales incentives due to tighter supplies of vehicles.
Games company Nexon climbed 13.53% after the firm broadened its earnings outlook, while Kansai Paint rose 5.2% on sharper earnings.
Analysts at Okasan Securities said domestic quarterly earnings so far outpaced estimates by 5.1% for companies that have declared results as of Tuesday.
Takashi Hiroki, chief strategist at Monex Securities, said: “The corporate earnings outlook is improving, so I believe the Japanese market will rebound soon.” (Reporting by Hideyuki Sano, additional reporting by Junko Fujita; Editing by Sherry Jacob-Phillips and Ramakrishnan M.)