The stock market in Japan slipped into the red after a positive start as the mood turned cautious ahead of announcement of some key earnings results.
The Nikkei opened at 8990, and after an initial surge to 8918, slipped to 8850, down 57.50 points or 0.65%, as investors looked to take profits after recent strong gains. With some buying is happening at lower levels, the benchmark has recovered a bit and is trading at 8865 now, down 43 points from its previous close.
The Yen is up marginally at 99.16 against the U.S. dollar.
Toshiba is down over 5% as traders are taking profit on its recent gains. Retail, tech export, financial, property, telecom, shipbuilding, machinery and construction and telecom stocks are seeing weakness. Trading houses also moving to the downside. Utility and auto stocks are trading on a mixed note. However, steel stocks are trading higher following Nomura Holdings Inc. raising its outlook on the industry.
On Friday, the Japanese market had ended in positive territory on expectations that the U.S. economy will recover earlier-than-expected. A slew of economic reports released last week suggested that the pace of economic slowdown had slowed down to a notable extent.
This week, Wall Street will be busy assessing report cards as the season springs forward. IBM, Coca-Cola, Yahoo, Apple, Microsoft are among the conglomerates scheduled to report during the course of this week. Armonk, New York-based technology giant International Business Machines Corp. is set to report first quarter results on April 20.
As for IBM, which will report its earnings today, Wall Street analysts have a consensus earnings estimate of $1.66 per share on revenues of $22.51 billion for the first quarter.
Coca-Cola, Yahoo, Apple, Microsoft are among the conglomerates scheduled to report during the week.
Bank of America, Boston Scientific Corp., Eli Lilly & Co, Texas Instruments Inc., Halliburton Co and Weatherford International Limited are among the other big ones scheduled to announce their quarterly results today.
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