Japanese shares fell, with the Nikkei 225 Stock Average retreating from its highest close since 2008, amid earnings concern as Nikon Corp. plunged after trimming its outlook on slowing demand from Europe.
Camera-maker Nikon lost 19 percent to lead declines on the Nikkei 225. Yamaha Corp. slumped 16 percent after the piano maker cut its net-income forecast to zero. Nippon Paper Group Inc. surged 13 percent after reversing a loss. Mazda Motor Corp. added 12 percent after the carmaker raised its operating-profit forecast by 80 percent, citing a weaker yen.
The Nikkei 225 dropped 0.9 percent to close at 11,357.07 in Tokyo after yesterday finishing at its highest since Sept. 29, 2008. The broader Topix Index was little changed at 969.18, with volume on the gauge 43 percent above the 30-day average.
“We are in a bull market, but investors are still concerned about earnings,” saidKoji Toda, chief fund manager at Resona Bank Ltd. in Tokyo, which oversees about 15 trillion yen ($160 billion). “Some investors are selling shares today because yesterday’s rally was excessive.”
The Topix has surged about 34 percent since elections were announced on Nov. 14 on optimism the new government will take aggressive steps to fight deflation. The gauge is trading at 1.1 times book value, compared with 2.1 for the Standard & Poor’s 500 Index and 1.4 for the Stoxx Europe 600 Index.
