Tokyo shares slip in thin trading

Shares in Tokyo were marginally lower on Tuesday in a thin trading session as investors took profits and sold off holdings in export-dependent companies after data showed that consumer spending in the US slowed in March.

The benchmark Nikkei 225 average ended down 0.7 per cent at 17,274.98. The broader Topix index dipped 0.5 per cent to 1,693.25. Trading was thin following a holiday on Monday and ahead of upcoming national holidays on Thursday and Friday. Most Japanese companies are closed for the entire “Golden Week” holiday period, which kicked off on Monday and marks the exodus of Japanese holidaymakers to exotic destinations.

Shares of major exporters were broadly lower after the US Commerce Department said American consumer spending slowed in March, rising 0.3 per cent from the previous month, less than February’s revised 0.7 per cent increase. Fanuc fell 3 per cent to Y11,430 and TDK declined 2.2 per cent to Y10,140. Sony lost 1.6 per cent to finish at Y6,320 and Toyota Motor ended 0.7 per cent lower at Y7,270.

Shares of Sumitomo Metal Mining closed up 5.1 per cent at Y2,355 after the company said it expects to post annual operating profits of Y155bn this year, exceeding analysts’ estimates.

Shares of NTT DoCoMo moved up 2 per cent to Y209,000 after Japan’s leading mobile phone operator said on Friday it planned to raise its annual dividend payout to Y4,800 from Y4,000 and propose share buybacks of up to Y200bn at a June shareholder’s meeting.

Matsushita Electric Industrial, the consumer electronics giant behind the Panasonic brand name, rose 3.2 per cent to Y2,400 after it reported an 11 per cent increase in annual profit on Friday due to robust sales of plasma televisions.

Shares of Exedy, an auto parts maker, fell 7.9 per cent to Y2,955 after UBS lowered its rating on the company to “neutral 2” from “buy 2” and cut its target share price by 19 per cent. “Earnings and share price are forecast to weaken sharply over the near term due to the slowdown in the Nissan/Hyundai business,” said UBS in a note to clients.

Shares of Fuji Heavy Industries fell 2 per cent to Y583. The manufacturer of Subaru cars reported a bigger-than-expected 18 per cent decline in operating profit for the fiscal year that ended in March and forecast a 27 per cent drop for the current fiscal year. Like Nissan, Subaru has been hit with a shift in domestic demand from larger vehicles to mini-cars, which have smaller margins.