Nikkei ends down 0.6 pct, Casio drops

Tokyo, Apr 17: The Nikkei average slipped 0.57 percent on Tuesday as investors took profits in Kyocera Corp. and other recent gainers, while Casio Computer Co. Ltd. tumbled after Goldman Sachs downgraded the stock.

Investors also held back ahead of a string of U.S. economic indicators and earnings results from technology companies such as Intel Corp. on Tuesday.

''The problem is that no one thinks that the Nikkei would hit 18,000 in the near future because of uncertainties in the U.S.

economy,'' said Tsuyoshi Nomaguchi, strategist at Japanese equity research, of Daiwa Securities Co. Ltd.

''Earnings forecasts from Japanese companies will be conservative and unlikely to support the market either.

Naturally, investors want to sell whenever they get an opportunity to do so.'' The Nikkei lost 100.85 points to 17,527.45, while the broader TOPIX index was down 0.55 percent at 1,716.11.

Trade remained slow with 19.5 billion shares changing hands.

Declining shares beat advancing ones by a ratio of more than three to one.

Japanese stocks have lagged their U.S., European and Asian counterparts.

So far this year, the FTSE 100 of Britain's leading shares has risen nearly 5 percent, the Standard&Poor's 500 index added 3.5 percent, and Korea Composite Stock Price Index (KOSPI) jumped 6.6 percent. That compared with just 2 percent rise in the Tokyo's broader TOPIX index Masaru Hamasaki, senior strategist at Toyota Asset Management, said the poor performance of Tokyo stocks may be attributed to a lack of confidence in earnings growth.

''A cheap yen and others tell you that the business environment looks favourable to corporate earnings, but investors are not confident because companies are cautious,'' he said.

Meanwhile, after the market closed, Fujitsu Ltd said that it raised its group net profit outlook to a record 102 billion yen for the year ended March 31 from a previously forecast 80 billion yen on proceeds from sales of Fanuc Ltd. shares.

Profit Taking

Kyocera, an electronics parts maker, fell 1.3 percent to 11,600 yen, shedding part of its 3 percent gain from the previous session. TDK Corp., which also makes electronics parts, lost 0.8 percent to 10,640 yen.

In the same sector, Casio Computer dropped 3.5 percent to 2,490 yen after Goldman said in a report that it had lowered the rating on the stock to ''neutral'' from ''buy'', removing it from its Japan Buy List.

Bucking the overall bearish trend, Mitsui O.S.K. Lines Ltd.rose 2.4 percent to 1,437 yen after the Nikkei business daily reported the shipping firm will likely post a 1 percent rise in 2006/07 recurring profit to a record high, beating its own forecast of a 1 percent fall.

Among other gainers, Nikon Corp. climbed 3.1 percent to 2,855 yen after Goldman Sachs raised its rating on the camera and semiconductor-making equipment firm to ''buy'' from ''neutral'' and lifted its target price to 3,200 yen from 2,480 yen.

Reuters