Nikkei 225 Stock Index fell by 204.67 points or 2.11% to 9,489.34 as stronger yen hit Japanese stocks. Japanese yen rose to as high as 85.32 yen on Wednesday. A stronger yen will put a dent on Japanese companies due to the reliance of the country’s economy on exports. Tokyo Electron fell 4.95% to 4,510 yen, Canon Inc. slipped to 3,650 or down 4.33%, while Nissan Motor sunk 4.28% to 648 yen. Other auto stocks also shared the same fate as Toyota fell to 3,090 (-1.59%) and Honda settled at 2,780 yen or down by 2.22%.
Toyota’s raised profit forecast for full year ending March 2011 to a net income of 340 billion yen, higher than the earlier forecast of 310 billion yen. Its first fiscal quarter which ended June 2010 showed a profit of 190.47 billion yen compared to last year’s losses. Sales growth in Asia is seen as offsetting stronger yen and waves of recalls which have hit auto companies recently. Toyota sold 285,000 units in Asia excluding Japan. A 47% increase from a year earlier. In North America Toyota sold 526,000 units, a strong 36% annual increase. Its global sales for the year ending March 2011 were raised to 7.38 million units against a previous forecast of 7.29 million. The yen rate used in the forecast is 90 yen against US dollar, around 5% weaker than current USD/JPY rate. European market is seen not as rosy as Asian and North American ones as the company revised down its forecast for Europe to 770,000 units from 860,000 units while EURJPY rate is seen at 112 yen, down from 125 yen seen earlier. The forecast upgrade was announced after the Japan’s market closed.
Toyota’s raised profit forecast for full year ending March 2011 to a net income of 340 billion yen, higher than the earlier forecast of 310 billion yen. Its first fiscal quarter which ended June 2010 showed a profit of 190.47 billion yen compared to last year’s losses. Sales growth in Asia is seen as offsetting stronger yen and waves of recalls which have hit auto companies recently. Toyota sold 285,000 units in Asia excluding Japan. A 47% increase from a year earlier. In North America Toyota sold 526,000 units, a strong 36% annual increase. Its global sales for the year ending March 2011 were raised to 7.38 million units against a previous forecast of 7.29 million. The yen rate used in the forecast is 90 yen against US dollar, around 5% weaker than current USD/JPY rate. European market is seen not as rosy as Asian and North American ones as the company revised down its forecast for Europe to 770,000 units from 860,000 units while EURJPY rate is seen at 112 yen, down from 125 yen seen earlier. The forecast upgrade was announced after the Japan’s market closed.
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