International Markets: Tokyo - Japan exports lessen blow

The performance of Japanese stocks is likely to be mixed this week as gains by exporters on strong overseas demand offset declines in the rest of the market on pessimism over corporate earnings.

Japan's benchmark Nikkei 225 stock index fell 1.9 per cent last week to 17,647.45. On Friday, the index gained back 1.1 per cent of its 3 per cent slide in the first four days of the week.

"Japan's domestic economy is quite bad, and if you think only of the domestic, now is not a time to be buying Japanese stocks," said Toshiro Yoshinaga, manager of investment strategy at Yamaichi International Capital Management Co. "The only saviour is that Western economies are strong, particularly the US," - meaning strong sales for exporters.

The dollar's strengthening against the yen by as much as one yen on Friday may also help exporters.

Sony Corp, which relies on exports for about two-thirds of its sales, rose 2.6 per cent to 11,800. Mitsubishi Electric Corp, which makes consumer electronics, climbed 5.5 per cent to 444; Sharp Corp, a maker of audio equipment and computers, added 2.9 per cent to 1,080.

Car manufacturers rose 1.1 per cent as a group with Honda Motor Co rising 2.4 per cent to 4,350.

Stocks dependent on domestic demand, including contractors and retailers, may fall next week following a spate of bad economic news.

The Bank of Japan's "tankan" survey of business sentiment, released Wednesday, showed consumer spending has not recovered since an April sales tax increase with confidence fading throughout the nation's industries.

A parade of Japanese companies this week lowered their earnings forecasts for the half-year ended 30 September. Heavyweights ranging from Hitachi to Mitsukoshi to Mitsui Engineering & Shipbuilding Ltd cut profit forecasts or projected losses, blaming Japan's skidding economy. Of the 161 half- year earnings revisions announced since mid-September, 63 per cent have been lower.

Sliding land prices and record bankruptcies are also weighing on investors. Contractors as a group fell nearly 4 per cent this week. Japan's contractors are struggling to service 12 trillion yen in interest-bearing debt which has been left over from land bought during the 1980s asset-inflated bubble.

In contrast, Japanese bonds are likely to rise on pessimism that the economic outlook will remain too shaky to withstand higher interest rates.

Copyright: IOS & Bloomberg

Start your day with The Independent, sign up for daily news emails
Property
pets
Arts and Entertainment
tvGame of Thrones season 5 ep 4, review - WARNING: contains major spoiliers!
Arts and Entertainment
tvThe C-Word, TV review
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Sport
Danny Jones was in the Wales squad for the 2013 World Cup
rugby leagueKeighley Cougars half-back was taken off after just four minutes
Life and Style
The original ZX Spectrum was simple to plug into your TV and get playing on
techThirty years on, the ZX Spectrum is back, after a fashion
News
Tiger Woods and Lindsey Vonn are breaking up after nearly three years together
peopleFormer couple announce separation in posts on their websites
Sport
football
Life and Style
Google celebrates Bartolomeo Cristofori's 360th birthday
techGoogle Doodle to the rescue
Arts and Entertainment
Haunted looks: Matthew Macfadyen and Timothy Spall star in ‘The Enfield Haunting’
tvThe Enfield Haunting, TV review
News
news
News
The Mattehorn stands reflected in Leisee lake near Sunnegga station on June 30, 2013 near Zermatt, Switzerland
news
ebooks
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living