Sony, IT stocks hit again as Tokyo market slides

Shares in Japan's major electronics companies slid again on Monday as the Nikkei 225 index hit its lowest level in 26 years and the yen climbed against the US$.

Shares in Japan's major electronics companies slid again on Monday, as the benchmark Nikkei 225 index hit its lowest level in 26 years and the yen strengthened against the dollar.

An emergency joint statement issued by the Group of Seven major industrialized nations expressing strong concern over the recent sharp rise in the yen's value did little to halt the currency's climb. It was trading at ¥92.85 to the US dollar at 4 p.m. on Monday afternoon, up 2.29 yen since Friday.

The strong yen makes Japanese goods more expensive overseas and also reduces the value of profits made overseas when they are brought back to Japan, hitting companies that are major exporters like Sony. The currency's climb in recent weeks was partly behind the revision Sony made to its financial outlook last week. Sony had assumed an average exchange rate of ¥105 to the US dollar when it originally issued its financial outlook but the revised outlook assumed ¥100 to the US dollar, which is already far away from the currency's current value.

Shares in Sony, which lost 12 percent of their value on Friday, were again hit hard and closed down 8 percent at ¥1,821 (US$19.59).

On Monday Canon revised its financial outlook downwards because of the strong yen. The company said the exchange rate and a slowing global economy hit demand for its products and as a result net profit in the July to September period was down 21 percent against the same period last year. It now expects to record a full year net profit of ¥375 billion, down from its previous target of ¥500 billion.

The results and earnings forecast downgrade were issued after the Tokyo market closed and won't be reflected in the company's stock price until Tuesday at the earliest. In Monday trading Canon shares were down 11 percent.

Other electronics companies saw steeper drops.

Shares in computer memory chip maker Elpida slid 16 percent to an all-time low after investment banks cut their outlook for the shares. Pioneer saw its shares decline 15 percent also after a cut in the share outlook, Mitsubishi Electric dropped 14 percent and Sanyo Electric was off 12 percent.

Shares in computer game maker Nintendo, which also relies on overseas markets for a lot of its sales, were down 11 percent, NEC shares fell 10 percent and single digit declines were recorded by Fujitsu, Panasonic and Toshiba.

This week sees quarterly earnings for the July to September period due from many electronics companies. Panasonic and Ricoh are due to report after the market close on Tuesday. Toshiba, Fujitsu and Sony will report on Wednesday. Thursday will see Sharp, Nintendo, NEC, Hitachi and Kyocera. Cell phone carrier NTT DoCoMo is due to report results on Friday.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?