Mazda Motor Corp lost 2.69% after the car-maker cut sales and profit guidance due to production constraints. Sumitomo Metal Mining Co plunged 11.73% after forecasting earnings far below analyst estimates, amid uncertainty over China's economy and metals prices. Imaging company Fujifilm Holdings Corp surged 5.88% following results that beat market expectations. ENEOS Holdings Inc led energy shares higher as oil prices rose, and then extended gains after saying it planned to list its metals unit. The benchmark Nikkei gauge ended almost flat, inching 0.02% to close at 29,126.72. Of the index components, 137 stocks declined, while 85 rose and three were flat.
The broader Topix edged down 0.14% to 2,083.09.
Nearly 300 companies reported earnings on Wednesday,
followed by about 1,500 more on Thursday and Friday. Meanwhile,
G7 leaders and finance officials are meeting in Japan in the
coming days, clouded by the potential absence of U.S. President
Joe Biden due to stalled negotiations on lifting the debt limit
to avert a default.
"With the Nikkei average rising to the highest levels this
year, from the this point, we have to start wondering if these
(valuation) levels are reasonable," said Nomura strategist Kazuo
Kamitani. "With that in mind, I think it's becoming difficult to
chase further price increases."
"Looking forward, we need to keep an eye on the news flow
about the U.S. debt ceiling issue while following earnings
announcements," he added.
Non-ferrous metals producers were the biggest
decliners among the Tokyo Stock Exchange's 33 industry
sub-indexes, sliding 4.34%. Oil and gas companies were
the biggest gainers, climbing 3.17% as a group and energy
explorers gained 1.07%.
(Reporting by Rocky Swift; Editing by Nivedita Bhattacharjee
and Sonia Cheema)
