japanese high tech companies share price lower in tokyo
SEARCH SITE
Enter keyword:
View Site Map
STOCK QUOTES
Enter symbol:
Lookup symbol
NEWS
Top Financial News
Top World News
Stock Market Update
Technology
U.S. Economy
Columns
STOCKS
Stocks on the Move
Chart Builder
World Indices
Movers by Exchange
Stocks in the Dow
S&P 500 Snapshot
Industry Movers
Most Active Options
IPO Center
Regional Indices
RATES & BONDS
Key Rates
U.S. Treasuries
International Bonds
Muni Bond Yields
CURRENCIES
Currency Rates
Cross Currency Rates
Currency Calculator
EMU Update
COMMODITIES
Most Active Futures
Commodity Movers
Energy
Top Financial News
Sun, 18 Apr 1999, 9:33pm EDT
Japanese Stocks Mixed; High-Technology Companies Fall, Steelmakers
Climb
Japan's Stocks Mixed; High-Tech Companies Fall, Steelmakers Up
Tokyo, April 19 (Bloomberg) -- Japanese stocks traded mixed.
Computer companies slipped on concern profit warnings by U.S.
industry leaders threaten earnings. Steelmakers rose on
expectations they'll benefit from restructuring programs and from
government step to promote economic recovery.
Fujitsu Ltd. and Toshiba Corp. fell after Sun Microsystems
Inc. warned Friday that second-half earnings may disappoint.
Nisshin Steel Co., the country's sixth-largest steelmaker, rose
on a newspaper report it will cut 21 percent of its workforce
over the next two years.
''High-tech companies are running up against a wall of bad
news from the U.S.,'' said Akira Yamada, chief dealer at Kyokuto
Securities Co. in Osaka. ''Investors are responding by shifting
into domestic industries, and restructuring stories are providing
one impetus for that.''
The benchmark Nikkei 225 average fell 74.66, or 0.4 percent,
to 16,776.92. The Topix index of all companies listed on the
first section of the Tokyo Stock Exchange dropped 0.20, or 0.01
percent, to 1342.83.
Fujitsa and Toshiba led a retreat by companies that are
suppliers and competitors to the U.S. computer industry.
Fujitsu, Japan's largest computer manufacturer, fell 23 yen
to 1,925. Toshiba, the country's No. 2 chipmaker, dropped 8 yen
to 802. Minebea Co., the world's top producer of miniature ball-
bearings for high-technology applications, slid 18 yen to 1,242.
The warning by Sun, the world's No. 4 maker of servers,
follows similar alarms last week from the likes of Compaq
Computer Corp. and Intel Corp.
Sun said second-half earnings may disappoint because some
customers are holding off buying new equipment before 2000 and
because demand from Asia is still week.
The news dragged down the computer-heavy Nasdaq Composite
Index 1.5 percent.
Nikkei 225 futures for July delivery fell 30 to 16,760 in
Osaka; in Singapore trading, they dropped 10 to 16,760.
Foreign investors, who have set the pace for the benchmark's
22 percent gain on the year, placed orders to buy twice as many
shares as they sold before the opening today.
Solid as Steel
Still, steelmakers extended last week's gains. Fund managers
are betting that profits at smokestack industries may get a
double shot in the arm from their own cost-cutting efforts plus
measures by the government to stimulate new investment. Finance
Minister Kiichi Miyazawa said Friday the government may consider
offering new tax incentives on capital expenditure.
Nisshin jumped almost 4 percent, climbing 7 yen to 194 after
the Nihon Keizai newspaper said it will cut 1,200 jobs over the
next two years from the current 5,600. The company will reduce
the number of employees by not replacing retiring workers and
transferring others to affiliated companies.
The report comes after NKK Corp., Japan's No. 2 steelmaker,
said last week it will cut capital expenditures by 46 percent.
NKK added 4 yen to 101. Sumitomo Metal Industries Ltd., rose
10 yen to 180.
Brokerages gained on a newspaper report they'll post
stronger earnings in the year just ended thanks to the market's
rebound from a 13-year low in October, swelling commissions.
Nomura Securities Co. rose 20 yen to 1,364. Japan's largest
brokerage will likely post a parent pretax profit of 45 billion
yen ($381 million), up from 40.6 billion yen the year before, the
Nihon Keizai newspaper said, without citing sources. Many
securities companies will probably report a net loss, however,
because they have to write off bad loans provided to affiliates.
Industrial Bank of Japan Ltd., the country's only remaining
long-term lender, soared 17 yen to 861 on a report by the Nihon
Keizai newspaper it will reorganize its withdrawal from corporate
lending in Europe under a restructuring plan.
©1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.
|
