Weaker corporate profits weigh on Asian markets

Nikkei:8,988.39 (–62.08) Hang Seng: 19,864.87 (–154.37) Shanghai Comp:8,988.39 (–62.08)

ASIAN STOCK markets ended a strong month on a negative note yesterday, as corporate earnings concerns came to the fore. The FTSE Asia-Pacific index fell 2.2 per cent.

Canon rose 1 per cent to ¥3,600, Nintendo added 2.6 per cent to ¥12,070 and Nikon gained 1.8 per cent to ¥1,789.

Honda Motor however tumbled 3.7 per cent to ¥2,406, Panasonic shed 2.1 per cent to ¥809 and Toshiba lost 3.9 per cent to ¥349 ahead of earnings reports from all three after the close of trading. Honda missed estimates with its second-quarter figures and withdrew its annual earnings guidance, while Panasonic cut its full-year outlook.

In Australia, the focus was on Qantas Airways as the carrier’s aircraft returned to the skies after being grounded over the weekend in response to a series of strikes. The market judged the move a victory for Qantas and the carrier’s shares rose 4.3 per cent to A$1.61.

In Taipei, Acer fell 2 per cent to T$34.70 after warning on Friday it expected sales to drop in the coming quarter. Asustek fell 3 per cent to T$210.50 ahead of its third quarter figures. – (Copyright The Financial Times Limited 2011)