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Tokyo stocks lose ground on profit takings, stronger yen (Roundup)
Nov 5, 2009, 7:28 GMT
Tokyo - Profit taking and the yen strengthening against the dollar dragged down Japanese stocks Thursday, as investors awaited quarterly results from carmaker Toyota Motor Corp and the latest US employment data.
The key Nikkei 225 Stock Average dropped 126.87 points, or 1.29 per cent, to 9,717.44, while the broader-based Topix index was down 6.31 points, or 0.72 per cent, to 874.96.
Toyota's results, which came after the market close, showed a surprise profit in the July-to-September quarter while more than halving its expected loss for the entire fiscal year as government stimulus packages revived car sales and the world's largest carmaker instituted cost cutting.
After three quarters of losses, Toyota returned to the black in its second quarter with a net profit of 21.8 billion yen. In the same quarter a year earlier, it had posted a net profit of 139.8 billion yen.
The Japanese company said it now expected a net loss of 200 billion yen (2.2 billion dollars) for the year ending March 31 instead of the previously forecast 450 billion yen.
On currency markets at noon (0300 GMT) the dollar traded at 90.47-51 yen, down from Wednesday's 5 pm quote of 90.55-56 yen. The euro was at 1.4843-45 dollars, up from 1.4745-46 dollars the previous day, and at 134.30-37 yen, up from 133.52-56 yen.
A stronger yen makes Japanese producers' products more expensive abroad and reduces their overseas earnings.
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