BloombergBusiness – January 6, 2016 – Japanese stocks swung between gains and losses after stability returned to China’s markets. Food companies led gains, while suppliers to Apple Inc. declined.
The Topix index slipped less than 0.1 percent to 1,503.72 as of 9:47 a.m. in Tokyo, swinging from a gain of as much as 0.7 percent. The Nikkei 225 Stock Average was little changed at 18,372.87. The yen traded at 119.06 per dollar, near a two-month high. Markets stabilized on Tuesday after Chinese government funds propped up shares in the local market, according to people familiar with the matter. The Shanghai Composite Index cut losses of as much as 3.2 percent to close 0.3 percent lower.
Developments in China “have already been processed by investors and they’re now beginning to look for the next catalyst,” said Chihiro Ohta, general manager of investment information at SMBC Nikko Securities Inc. in Tokyo. “Market movements today may not provide enough clues to the bigger trend.”
E-mini futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent after the underlying measure gained 0.2 percent Tuesday.
Apple Production
Apple, the world’s most valuable company, tumbled 2.5 percent to its lowest level since October after the Nikkei newspaper reported it cut production of its latest iPhone model by nearly a third. Japanese suppliers to the company declined on Wednesday, with Japan Display Inc. losing 3.3 percent, while Alps Electric Co. sank 5.9 percent. Sharp Corp. slumped 3.3 percent.
Chipmaker Renesas Electronics Corp. advanced 1.5 percent after Kyodo reported its largest shareholder, a government backed fund, may sell its stake to Sony Corp. The fund invested in Renesas in 2013 to help finance a turnaround and still owns 69 percent, according to Bloomberg data. Renesas said in 2014 that the government’s stake was too big.
Takata Corp. sank 6.1 percent after the chairman of the Japan Auto Manufacturers Associations said there are no discussions to rescue the troubled air-bag supplier. Shares surged 14 percent on Monday on a report that Japanese automakers may provide support to Takata.
Sysmex Corp. and Shionogi & Co. each rose at least 1.3 percent after JPMorgan Chase & Co. initiated coverage of the drugmakers with overweight ratings.