Nikkei dips to 2-1/2-week low as yen firms, earnings disappoint

  • Reuters
  • Stock Market News
Nikkei dips to 2-1/2-week low as yen firms, earnings disappoint
Credit: © Reuters.

TOKYO, July 29 (Reuters) - Japanese shares fell to 2-1/2-week closing lows on Wednesday as a stronger yen and dismal earnings reports hurt sentiment, while Canon Inc crashed to a more than two-decade low after posting its first ever quarterly loss.

The Nikkei share average .N225 fell 1.15% to 22,397.11, the lowest close since July 10.

The broader Topix .TOPX lost 1.28% to 1,549.04, also hitting its 2-1/2-week closing low.

The safe-haven yen stood firm as the dollar remained weak on pessimism over a quick economic recovery. The yen rose as high as 104.955 to the dollar JPY= in the previous session, hitting a more than four-month high.

Earnings reports of several Japanese firms on Tuesday also highlighted the toll the coronavirus outbreak is taking on the economy.

Canon Inc 7751.T dived 13.46% to its lowest level since March 1999 after the camera and printer manufacturer reported its first ever quarterly loss. Motor 7201.T slipped 10.39% after the automaker warned of a record operating loss this year and its lowest sales in a decade. Corp 6954.T dropped 7.16% after the factory automation company forecast its operating profit to decline for the fiscal year.

Meanwhile, Omron 6645.T added 2.29%, having touched a record high early in the session, after the electronics maker reported upbeat April-June earnings.

Some investors also stayed on the sidelines as they looked to the U.S. Federal Reserve's policy decision later in the day.

Elsewhere, printer manufacturers tracked Canon Inc's fall, with Konica Minolta 4902.T shedding 10.8% to its lowest since November 1999, while Ricoh Co Ltd 7752.T dipped 8.59%.

Japanese electronics retailer Laox Co Ltd 8202.T lost 8.81% after the firm said it would shut down half of its stores as the coronavirus outbreak kept away tourists. Holdings Company Japan 2702.T dropped 7.56% after McDonald's Corp (NYSE: MCD ) MCD.N said it planned to reduce stake in Japan.

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