Japan stocks hit by weak earnings, global woes; Topix at 7-mth low

  • Reuters
  • Stock Market News
Japan stocks hit by weak earnings, global woes; Topix at 7-mth low
Credit: © Reuters.

* Nikkei hits 3-mth low, broader Topix marks 7-mth trough

* Subdued start to domestic earnings season dampens sentiment

* Pullback by China shares, lingering geopolitical worries weigh

By Shinichi Saoshiro

TOKYO, Oct 23 (Reuters) - Japanese stocks fell on Tuesday, with the broad Topix index retreating to a seven-month low as subdued corporate earnings and a pullback in global equities weighed on investor sentiment.

The Nikkei .N225 closed 2.67 percent lower at 22,010.78, handing back the previous day's modest gains, with overnight losses on Wall Street setting the tone early on. The index touched 21,993.07 in intraday trade, its lowest since Aug. 16.

The broader Topix .TOPX ended the day down 2.63 percent at 1,650.72, its lowest close since March 26, with all 33 of its subindexes in negative territory.

Chinese shares, which had soared the previous session in a boost to the Nikkei, also slipped on Tuesday and pushed down Japanese and other Asian markets.

"Shares are susceptible to falling amid a steady stream of concerning geopolitical headlines. The start to the domestic earnings season has also been marked by several notable downward revisions and this is also weighing on sentiment," said Takashi Hiroki, chief strategist at Monex Securities.

Concerns over Italy's budget plan and Brexit negotiations added to the general atmosphere of caution. Group Corp 5938.T fell 15.7 percent after the manufacturer and distributor of building materials and plumbing equipment slashed its net profit forecast for the year through March 2019 to 1.5 billion yen ($13.31 million) from 50 billion yen. revised down its profit outlook amid a drop in demand for new housing in the domestic market. Lixil also failed to gain U.S. approval to sell its subsidiary to a Chinese firm and was unable to separate the subsidiary's liability and losses from its financial reporting. Chemical Co 4217.T dropped 8.6 percent after the company reported that its April-September net profit declined by 2.1 percent to 16.41 billion yen. Heavy Industries 7012.T shed 1.3 percent, extending its decline following a drop of more than 9 percent suffered the previous day after the industrial heavyweight slashed its forecasts for the current fiscal year.

Mitsubishi Heavy Industries 7011.T retreated 2.6 percent after public broadcaster NHK reported that the company is arranging 220 billion yen in financial support for its aircraft unit, which has struggled to deliver is first passenger jet. few gainers included CE Holdings Co 4320.T , which surged 12.7 percent after the medical system information provider revised up its operating profit outlook for the year through September 2018 to 526 million yen from 400 million yen. = 112.7300 yen)

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