April 24, 2020 / 3:19 AM / a month ago

Japanese shares slide as investors flee risk on pandemic uncertainty

TOKYO, April 24 (Reuters) - Japanese shares edged down on Friday, as their rebound since last month showed signs of fatigue, with investors still in the dark over when and how quickly the economy can recover from the fallout of the coronavirus pandemic.

Cyclical shares led the losses, with 29 of 33 industry sub-indexes in the Tokyo Stock Exchange trading in the red, while semiconductor-related shares were hit by dim earnings outlook from U.S. chipmaker Intel.

The Nikkei share average fell 0.81% to 19,272.42. It held above its 25-day moving average, now at 18,969 but faces resistance from 50-day average at 19,894.

The market is on track for its first weekly loss in three, with the Nikkei down 3.1% by midday.

The broader Topix lost 0.62% on Friday morning to 1,417.21.

Semi-conductor shares were bruised by a 6% drop in Intel shares in extended trade after the chipmaker forecast second-quarter earnings below Wall Street views, but said it was unclear about its annual outlook due to the economic uncertainty caused by the pandemic.

Disco fell 3.5% even as the semi-conductor manufacturing machine maker announced consensus-beating earnings for Jan-March the previous session.

Advantest lost 2.1%, while Tokyo Electron fell 1.9%.

Corporate earnings from Japanese companies have started to trickle in, but provided little clarity so far on what to expect from the rest of the season.

Canon Inc shed 2.8% after the camera and copy machine maker withdrew earnings forecast for the current financial year, citing difficulty in predicting the end of the coronavirus impact.

Its net profit in the Jan-March quarter dropped 30% from a year earlier, though it came in better than market expectations.

Bucking the trend, Omron rose 5.1% after its full-year profit topped estimates.

Chugai Pharmaceutical gained 2.6% as the drugmaker reported brisk profit growth in the quarter that ended in March.

Reporting by Hideyuki Sano, Editing by Sherry Jacob-Phillips

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below