Nikkei closes little changed as upbeat earnings offset coronavirus woes

Credit: REUTERS/KIM KYUNG-HOON

Japanese shares ended nearly flat on Tuesday, as strong earnings from camera and copy machine maker Canon helped counter weakness in travel and real estate stocks following a lower finish on Wall Street.

TOKYO, Oct 27 (Reuters) - Japanese shares ended nearly flat on Tuesday, as strong earnings from camera and copy machine maker Canon helped counter weakness in travel and real estate stocks following a lower finish on Wall Street.

After dropping as much as 1.1% in early trade, the Nikkei share average .N225 was nearly flat at 23,485.80 while the broader Topix .TOPX lost 0.09% to 1,617.53.

The market got support from upbeat earnings reports, with Canon 7751.T jumping over 8% after raising its annual earnings outlook and legal portal service operator Bengo4.com 6027.T reversing course to rise 7.5% on upbeat quarterly results.

Overall sentiment, however, was weaker as growing worries over a second wave of infections in the United States and Europe pressured Wall Street overnight.

Declining the most, the airline index .IAIRL.T dropped 3.7% as investors focused on the kind of support airlines would get to survive the COVID-19 pandemic.

Japan Airline 9201.T lost 4.27% as the Nikkei business daily reported it was likely to post a record net loss of about 230 billion yen ($2.20 billion) for the fiscal year ending March 2021. It is also reportedly seeking 300 billion yen in funding.

Smaller peer Star Flyer 9206.T ended 0.9% lower, having lost as much as 7.0% after a report that it may sell new shares to a fund.

Railway operators also struggled, with West Japan Railway 9021.T and Central Japan Railway 9022.T falling around 3% each.

Real estate companies Mitsubishi Fudosan 8801.T and Sumitomo Realty 8830.T fell 2.4% and 1.75%, respectively.

The REIT (real estate investment trust) index fell to a three-month low before some bargain-hunting helped it erase losses to finish nearly flat.

Shares of Nidec 6594.T, which have doubled from a low hit in March, dropped 1.8% even as the motor maker lifted its annual earnings estimate.

(Reporting by Hideyuki Sano and Eimi Yamamitsu; Editing by Aditya Soni)

((hideyuki.sano@thomsonreuters.com; +81 3 4563 2768;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More