The Nikkei index of Japan is now nearing a five year high as the share average jumped higher in the day's trading. The mood though was tempered due to sharp declines for share values of Canon Inc and Nintendo Co Ltd, both failing to meet investor expectations of strong earnings for the period.
Many market analysts have been expecting that Japanese companies would raise their earnings guidance for 2013 amidst the falling value of the yen, which has been pegged at 14% for the year. This has been caused by government and central bank policies aiming to jump start the Japanese economy to growth again.
For the period, Canon fell by 5% after a previous year's high. The decline comes after the camera and printer manufacturer's lifting of its annual operating profit forecast by almost 10% to 450 billion yen or US$4.5 billion. This is well below the market forecast for the company at 510 billion yen or US$5.1 billion.
Another casualty is Nintendo, which fell 5.5% despite boosting its forecast for operating profits of nearly 100 billion yen after two continuous years of reported losses.
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