Japan Nikkei falls on weak earnings

Japan share market finished session lower on Wednesday, 08 February 2023, as investors locked in gains amid firmness of the yen against the U.S. dollar as well as weak earnings reports from major Japanese firms.

The 225-issue Nikkei Stock Average index declined 79.01 points, or 0.29%, to finish at 27,606.46. The broader Topix index of all First Section issues on the Tokyo Stock Exchange edged up 0.57 point, or 0.03%, to 1,983.97.

Total 19 of 33 TSE sectors declined, with Other Products, Iron & Steel, Textiles & Apparels, Retail Trade, Nonferrous Metals, and Securities & Commodities Futures issues being notable losers. Pharmaceutical, Oil & Coal Products, and Banks issues were notable gainers.

Shares of Softbank which invests money in startups through its popular Vision Fund declined over 5%, as SoftBank's Vision Fund posted a cumulative quarterly loss of over $5.1 billion.

Shares of videogame company Nintendo fell more than 7%, as the company reduced its full-year revenue and profit outlook. Nintendo expects Switch hardware and software unit sales to decline and weigh on the company's overall financials.

Sharp Corp, which manufactures electronic components and consumer electronics, declined by 12% due to significant decline in operating and net profit. The company said that the weakened Yen and ongoing sluggishness in the Display Device segment weighed on its profitability. Furthermore, Sharp lowered its forecast and expects to report a loss in Fiscal 2022.

CURRENCY NEWS: Yen appreciated to upper 130 level against the dollar. The dollar stood at around 130.86 yen in late Tokyo trading Wednesday, down 0.15% from 131.05 on Tuesday.

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