CORRECTED-UPDATE 1-Nikkei skids as investors book gains; Suntory shines

jueves 6 de noviembre de 2014 01:49 GYT
 

(Corrects company name in third paragraph to Myojo Asset
Management)
    * Investors take profits after strong gains since Friday
    * Toyota gains on rosy earnings prospects pared in afternoon
session
    * Suntory outperforms on strong earnings for Jan-Sept

    By Ayai Tomisawa and Thomas Wilson
    TOKYO, Nov 6 (Reuters) - Japanese stocks sagged on Thursday
afternoon as investors closed positions following strong gains
in the last three trading days, wiping out morning advances for
Toyota Motor Co.
    The Nikkei benchmark dropped 0.6 percent to
16,826.21 by 0244 GMT.
    "Hedge funds are now closing positions after the Bank of
Japan's additional easing.  They think stocks are unlikely to
rise further," said Makoto Kikuchi, CEO of Myojo Asset
Management Japan.
    Since Friday investors have lapped up the twin catalysts of
the Bank Of Japan's shock move to ease monetary policy further,
as well as the Government Pension Investment Fund's decision to
increase its allocation of funds to domestic stocks.
    The Nikkei made slim gains during Thursday's morning
session, breaking through the 17,000-mark and then hovering near
seven-year highs on the back of strongly performing Toyota Motor
Corp shares and a weaker yen.
    Trading some 9 percent above its 25-day moving average of
15,578.06, some players warned that the market was overheated.
    "Even in a bullish environment, historical data has shown
that the percentage gains showing a gap between the current
level and the 25-day moving average should stay within 8
percent," said Hikaru Sato, a senior technical analyst at Daiwa
Securities.
    Toyota shares jumped after surprising investors with an
earnings upgrade, predicting operating profit of 2.50 trillion
yen for the 2014 business year, up from the previously forecast
2.30 trillion yen. 
    By 0228 GMT, Toyota shares were up 0.2 percent after
advancing 1.2 percent in the morning session, when they were the
most traded by turnover. 
    "It was impressive that the automaker was able to be
profitable through its value added models like Lexus hybrids,"
said Yoshihiro Okumura, an analyst at Chibagin Asset Management.
    "Toyota is also expected to post a high operating profit
margin through a new platform next year, and it's a plus in the
long-term."
    In the U.S. stocks rallied and the dollar rose as the
Republicans swept mid-term elections, bolstering investor hopes
for more business and energy-friendly policies. 
    The dollar surged to a seven-year high of 115 yen,
helping exporter shares, before falling away to 114.50 in the
afternoon session. 
    Gains in exporters like Nissan were pared, with the
auto-maker falling 0.3 percent after rising 1.0 in the morning.
    One bright spot was Suntory Beverage & Food, which
soared 5.4 percent after it released strong profits for the
Jan-Sept period due to robust beverage sales.
    The broader Topix slipped 0.8 percent to 1,361.50,
and the JPX-Nikkei Index 400 skidded 0.8 percent to
12,425.76.
    

 (Reporting by Ayai Tomisawa and Tom Wilson; Editing by Simon
Cameron-Moore)