Nikkei dips as rising costs hit some corporate earnings
TOKYO, Nov 10 (Reuters) - Japan's Nikkei share average dipped on Wednesday as latest earnings from a raft of companies underscored the fallout from rising costs of raw materials, although analysts said the overall earnings picture was not dull.
The Nikkei average was down 0.30% at 29,197.00, on course for its fourth straight day of losses while the broader Topix slipped 0.21% to 2,014.52.
Sumitomo Rubber fell 12.7% after the firm slashed its profit outlook, becoming the latest victim from rising costs of raw materials.
Mitsubishi Materials lost 6.2% after the non-ferrous metal firm revised down its operating profit outlook.
Elecom tumbled 11.1% after the manufacturer of USB memories and other computer-related goods cut its profit forecast due to chip shortages and rising costs.
Beverage maker Kirin Holdings fell 5.8% as the market was underwhelmed by its quarterly results, which were hit by domestic social restrictions.
On the other hand, Nissan Motor jumped 7% after the carmaker raised its full-year operating profit outlook by a fifth as its margins got a boost from newer models and lower sales incentives due to tight supplies of vehicles.
Game company Nexon soared 14.0% after the firm bumped up its earnings outlook sharply while Kansai Paint rose 5.2% on brisk earnings.
Some analysts said Japanese corporate earnings so far have been fairly good and that the market could soon gain from them.
Analysts from Okasan Securities said quarterly earnings have beaten estimates by 5.1% so far among the companies that have announced results by Tuesday.
Data from Refinitiv Datastream shows the Topix traded at 14.4 times the expected earnings, below its average over the past 10 years, in contrast to U.S. shares that are traded near historic high with multiple of 21.1.
"Corporate earnings outlook is improving so I do believe the Japanese market will soon rebound," said Takashi Hiroki, chief strategist at Monex Securities. (Reporting by Hideyuki Sano; Editing by Sherry Jacob-Phillips)
