AP: Japan stocks mixed as Nikkei snaps 9-day rally
The Associated Press
(AP) — TOKYO - Japan stocks were mixed Tuesday as investors curbed their recent appetite for equities, ending a robust nine-day rally by the benchmark index.
The Nikkei 225 stock average slipped 1.4 points, or 0.01 percent, to 10,087.26 after gaining more than 11 percent between July 13 and July 27. It was the Nikkei's longest winning streak in 21 years.
The broader Topix index added 0.2 percent to 930.13.
Players used the day to lock in gains but held the Nikkei above the psychologically key 10,000 line. Overall optimism about the global economic outlook remained firm, particularly after a government report overnight showed that new U.S. homes sales posted the fastest increase in June in more than eight years.
Shares of steelmakers rose sharply, with JFE Holdings Inc. soaring 7.3 percent to 3,550 and Nippon Steel Corp. gaining 2.2 percent to 377 yen.
Investors flocked to JFE after the company's earnings beat expectations and it forecast operating profit of 80 billion yen for the fiscal year through March 2010.
Food and beverage companies also advanced on signs of improving earnings. Kirin Holdings Co., Japan's biggest brewery, climbed 3 percent to 1,428 yen after upgrading its first-half net profit outlook. It now expects to make 14 billion yen for the January-June period, better than its previous forecast of 10 billion yen.
Among big decliners, Hitachi Ltd. tumbled 3.6 percent to 293 yen. The electronics conglomerate said it swung to an 82.67 billion yen ($868 million) loss for the April-June quarter and announced plans to buy out five units through a tender offer.
The takeover triggered fears of the company's capital health.
Shipping company Mitsui O.S.K. Lines extended losses after posting disappointing earnings Monday. Its shares lost 0.8 percent to 594 yen.
"The (first quarter) results were negative, because, in addition to the worse than expected deterioration in the container ship business, recovery in car carrier shipments has been delayed," Seigo Ando, an analyst for Deutsche Securities, said in a note to clients.
In currencies, the dollar stood at 95.13 yen from 95.18 yen late Monday. The euro was trading at $1.4272 from $1.4242.
