“Japanese stocks fell, with the Topix Index erasing yesterday’s advance, as the yen climbed after Group of Seven officials gave conflicting signals about the currency’s volatility. Gree Inc. plunged after cutting its profit forecast.
Toyota Motor Corp., the world’s biggest auto manufacturer, lost 1.8 percent. Gree slumped 15 percent after reducing its outlook on delays to new social-networking games. Pioneer Corp., a maker of audio equipment, plunged 11 percent after forecasting a loss. Daikin Industries Ltd. lost 6.1 percent as the maker of air conditioners was cut to underperform from outperform at CLSA after net income fell.
The Nikkei 225 Stock Average slid 1 percent to close at 11,251.41 in Tokyo, with trading volume 10 percent above the 30- day average. The broader Topix fell 1.2 percent to 957.02, with more than six stocks dropping for each that gained, eliminating yesterday’s 1.2 percent gain.
“The market has been at a high level and investors want to sell shares to lock in profit,” saidKazuyuki Terao, Tokyo- based chief investment officer of Allianz Global Investors Japan Co., part of Allianz Global Investors which oversees about 302 billion euros ($406 billion). “When you look at earnings results, you see many companies doing not so well regardless of a weaker yen.”
The Topix surged about 32 percent since elections were announced on Nov. 14 amid optimism a new government will take aggressive steps to weaken the yen and beat deflation. The gauge is trading at 1.1 times book value, compared with 2.1 for the Standard & Poor’s 500 Index and 1.5 for the Stoxx Europe 600 Index.
