Nikkei down as Sony slips but Fujifilm gains
(Updates to midafternoon)
TOKYO, Jan 31 (Reuters) - The Nikkei share average dropped 0.94 percent on Wednesday as Sony Corp. (6758.T) and TDK Corp. (6762.T) declined after both firms failed to meet investors' expectations when they raised their profit forecasts.
But shares of Fujifilm Holdings Corp. (4901.T) rose sharply on its unexpectedly strong quarterly profit while NTT Data Corp. (9613.T) surged after lifting its dividend forecast.
"Analysts had given very bullish forecasts and investors bought shares. But the results did not meet expectations, prompting these people to take profits," said Hiroyuki Fukunaga, chief strategist at Rakuten Securities' research division.
The Nikkei .N225 was down 163.75 points at 17,326.44 as of 0432 GMT. Fukunaga said the key is whether the Nikkei will be supported at around 17,250 where the 25-day moving average is at now. The broader TOPIX index lost 0.81 percent to 1,717.59.
Shares of Nikko Cordial Corp. 8603.T remained untraded due to a flood of sell orders coming in at 1,184 yen, down 14.5 percent from Tuesday's close. The results of the company's own investigation into an earnings-manipulation scandal have increased concern that Japan's third-largest brokerage may be delisted.
Sony declined 2 percent to 5,520 yen after the electronics firm posted a 15 percent fall in quarterly operating profit on Tuesday, but it raised its annual outlook. [ID:nT134588]
Similarly, electronic components maker TDK slipped 1 percent to 10,070 yen. The company raised its full-year profit forecast by 3.3 percent to 63 billion yen on Tuesday, only slightly above the 61 billion yen analysts consensus forecast polled by Reuters Estimates.
"Even if earnings are good, if they don't meet what investors are hoping for, it becomes easy to take profits," said Takahiko Murai, general manager of equities at Nozomi Securities.
There were also concerns that price declines and rising inventories could hurt component makers.
Other parts makers were also down with Kyocera Corp (6971.T) off 1.3 percent and Murata Manufacturing Co. Ltd. (6981.OS) falling 1.6 percent.
Meanwhile, NTT Data rose 3.4 percent after the major system integrator raised its annual dividend forecast to 5,000 yen from its previous estimate of 4,000 yen.
Investors were also looking ahead to more earnings from some of Japan's largest companies. Toshiba Corp. (6502.T), Fujitsu Ltd. (6702.T) and Honda Motor Co. Ltd. (7267.T) are among those to release their earnings later in the day. (Additional reporting by David Dolan)
