By Masaki Kondo and Toshiro Hasegawa
Aug. 5 (Bloomberg) -- Japanese stocks fell as carmakers slid after having led gains during the Topix index’s 13-day advance.
Nissan Motor Co. dropped 1.9 percent. Isuzu Motors Ltd. decreased 4.7 percent after revenue fell by more than half. Yamaha Motor Co. extended its decline after an analyst said yesterday’s forecast cut was “beyond anything imaginable.” Fast Retailing Co. lost 3.5 percent after sales of its clothes stores fell for the first time in nine months.
“Investors are selling to take profit after the rapid gains,” said Yoshihiro Okumura, who helps oversee the equivalent of $365 million at Tokyo-based Chiba-gin Asset Management Co. “This is a normal, healthy correction. Whether sales will recover in the second half remains to be seen, although companies are doing well in their efforts to cut costs.”
The Nikkei 225 Stock Average lost 122.48, or 1.2 percent, to close at 10,252.53 in Tokyo. The broader Topix index declined 9.44, or 1 percent, to 949.58, with twice as many stocks retreating as advancing. Shares extended their drop in the afternoon as the yen strengthened against the dollar.
The Topix climbed for 13 consecutive sessions through yesterday, its longest winning streak since 1988, as earnings at companies including Honda Motor Co. and Sony Corp. beat analysts’ estimates because of cost reductions. The 14-day relative-strength index for the gauge exceeded 70 this week, the level that some traders see as a sign to sell.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.
Posts
No comments:
Post a Comment