Japanese stocks fell as the yen maintained gains and investors weighed profit reports from DeNA Co. and McDonald’s Corp.’s local unit. Energy explorers were dragged lower by a drop in oil prices.
The Topix index slipped 0.2 percent to 1,5891.86 as of 9:01 a.m. in Tokyo after closing Wednesday at the highest level since Aug. 20, up 16 percent from an eight-month low in September. The rebound came as 55 percent of companies reported better-than-expected quarterly profit this earnings season, and investors scrutinized economic data to assess whether the Bank of Japan will change its already unprecedented monetary stimulus.
The Nikkei 225 Stock Average slid 0.2 percent to 19,645.94. The yen traded at 122.77 per dollar after gaining 0.2 percent Wednesday. Oil slid to a two-month low Wednesday on signs crude supplies are continuing to expand.
DeNA, the social-website operator that’s working with Nintendo Co. on smartphone games, forecast third-quarter profit below analyst estimates. Nomura Holding Inc. analysts cut its share-price target on DeNA by 15 percent and lowered profit estimates citing slow improvement in overseas income and losses in new businesses. McDonald’s Holdings Co. Japan reported a nine-month loss of 29.3 billion yen ($239 million).
Earnings releases this week include the so-called megabanks, which all report on Friday. Combined net income at Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. fell 24 percent from a year earlier to 597 billion yen in the three months ended Sept. 30, according to calculations based on the average of five analyst estimates compiled by Bloomberg.
E-mini futures on the Standard & Poor’s 500 Index were little changed after the underlying gauge on Wednesday lost 0.3 percent.
Source : Bloomberg