Nikkei sheds 2.1 pct on exporters, Advantest drags

* Good earnings factored in,disappointing results
drag-analyst

* Advantest drop after warning of annual net loss

* Toyota extends losses on intensifying recall problems

By Aiko Hayashi

TOKYO, Jan 29 (BestGrowthStock) – Japan’s Nikkei average fell 2.1
percent to a six-week closing low on Friday, hit by negative
earnings surprises from firms such as chip equipment maker
Advantest Corp (6857.T: ) and a stronger yen that pressured shares
of exporters.

Toyota Motor Corp (7203.T: ) skidded further after the world’s
top automaker said it would extend a recall of millions of
vehicles.

Trade in Toyota shares remained active with some 29 million
shares changing hands, after volume of more than 38 million
shares on Thursday, the most active day of trade in the
carmaker’s stock in more than 20 years.

Advantest Corp (6857.T: ), which supplies chip testers to chip
makers such as Intel (INTC.O: ), sank more than 10 percent after
saying it now expects an annual net loss of 13.5 billion yen
($150.1 million), missing the market consensus for a loss of 7.2
billion yen by 16 analysts. [ID:nTOE60R07I]

Nippon Steel Corp (5401.T: ), the world’s second-biggest
steelmaker, slipped after forecasting its first annual net loss
in seven years as a building slump in Japan squeezes margins.
[ID:nSGE60R0H7]

“Good earnings have already been factored in and investors
are now instead sharply reacting to negative surprises such as
cuts in earnings outlooks,” said Hiroaki Kuramochi, chief equity
marketing officer at Tokai Tokyo Securities.

“Uncertainty about the outlook for the U.S. economy and a
stronger yen are also something of a double whammy for the
Japanese market.”

The benchmark Nikkei (.N225: ) fell 216.25 points to
10,198.04, its lowest close since Dec. 21.

The Nikkei shed 3.3 percent in January, following December’s
12.9 percent jump, which was the index’s biggest one-month
percentage rise in 14 years.

The broader Topix (.TOPX: ) shed 1.4 percent to 901.12.

Toyota fell 2 percent to 3,490 yen after the world’s top
automaker’s problems intensified as it announced it would extend
to Europe and China a recall of millions of vehicles due to
faulty accelerator pedals and floor mats. [ID:nN27231388]

Toyota’s stock has tumbled nearly 14 percent in the past
week.

The dollar was steady against the yen at 89.95 yen (JPY=: ),
but the euro dipped 0.2 percent to 125.40 yen (EURJPY=R: ),
hovering near a nine-month low of 124.81 yen struck on trading
platform EBS earlier on Friday.

Investors fret about a stronger yen as it eats into
exporters’ profits when they are repatriated.

Digital camera maker Canon Inc (7751.T: ) shed 3.9 percent to
3,535 yen and Honda Motor Co (7267.T: ) slipped 2.1 percent to
3,075 yen.

Advantest tumbled 10.2 percent to 2,253 yen, while Nippon
Steel shed 1.5 percent to 329 yen.

Nintendo (7974.OS: ) fell 4.1 percent to 25,250 yen after the
games maker posted a 23 percent fall in quarterly profit as
software sales for its DS handheld game player slowed and it cut
the price of its Wii console.

The company kept its forecast for a first annual profit
decline in four years. [ID:nTOE60Q0AG]

Stock Investing

(Additional reporting by Masayuki Kitano; Editing by Joseph
Radford)

Nikkei sheds 2.1 pct on exporters, Advantest drags