Nikkei drops on stronger yen; Sony, Credit Saison tumble

miércoles 14 de mayo de 2014 21:36 GYT

* Sony stumbles on loss forecast
    * Credit Saison biggest pct loser, trader says foreigners
    * Strong GDP offers little help amid worries about tax
impact from April - trader

    By Ayai Tomisawa
    TOKYO, May 15 (Reuters) - Japan's Nikkei share average
dropped on Thursday morning after declines on Wall Street and a
stronger yen hurt sentiment, while Sony Corp tumbled
after it disappointed the market with a loss forecast.
    Sony dropped 6.9 percent to a three-month low and was the
second most traded stock by turnover after it forecast a net
loss for a second year in a row for the year through March.
    "It's a structural issue," said a senior trader at a foreign
securities firm. "Foreign investors had bought it (Sony stock)
on the anticipation of some kind of broad changes based on Third
Point's investment in this company ... but nothing has happened
with Sony."
    The trader also said foreign investors were turned off by a
slew of other poor earnings and were placing sell orders on such
stocks as Credit Saison Co, which dived 15 percent
after releasing disappointing earnings. Credit Saison was the
biggest percent loser on the board.
    The Nikkei was down 1.4 percent at 14,202.28 in
midmorning trade, falling below its 25-day moving average of
    Japan's strong first-quarter gross domestic product data did
little to help the stock market as investors remained wary about
how the tax hike in April will affect the economy from the
April-June period. 
    "We knew that there would be strong demand from rush buying
before the April tax hike," said Nobuhiko Kuramochi, a
strategist at Mizuho Securities. "People are cautious about how
the tax hike will affect the current quarter and beyond."
    Japan's economy grew 1.5 percent in January-March from the
previous quarter, posting its biggest expansion since
July-September 2011, as consumer spending jumped ahead of an
April 1 sales tax increase. Capital spending also grew far
faster than expected. 
    Exporters weakened after the dollar slipped 0.1 percent to
101.80 yen. Toyota Motor Corp dropped 1.6
percent, Panasonic Corp declined 1.6 percent and Nikon
Corp shed 1.2 percent.
    The broader Topix dropped 1.1 percent to 1,169.84,
while the new JPX-Nikkei Index 400 slipped 1.1
percent to 10,645.53.

 (Editing by Chris Gallagher)