4:30 PM Tokyo – Nikkei average in Tokyo declined 2.3% and extended weekly losses to 6.6% after a surprise devaluation in China put investors on guard. Shanghai stock trading was halted for the second day this week after the index dropped 7% in the first 29 minutes of trading.
Markets in Asia and in Japan fell sharply after China let its currency drift lower for the second time this week.
The surprise move put investors on guard and stocks in Tokyo and across Asia fell on the worries that China may let the currency fall further.
The latest 0.5% devaluation may be beginning of additional steps that the People’s Bank of China may have to take to counter the recent 10% appreciation of the U.S. dollar, to which the yuan is linked.
In addition, Shanghai markets were forced to halt trading after the index dropped 7% in the first half-hour of trading. The stock market remained closed for the second day this week after sharp sell-off that is likely to continue several more days.
The Nikkei 225 Stock Average declined 423.98 or 2.3% to 17,767.34 and the broader Topix index dropped 30.90 or 2.1% to 1,457.94.
The yen slumped against the U.S. dollar to 117.86.
Stocks in Review
declined 3.5% to 6,130 yen after the retail store chain reported net sales in the nine-month ending in November surged 12.3% from a year ago to 177.55 billion yen.
Net income in the period jumped 5.1% to 20.27 billion yen compared to 19.29 billion yen and diluted earnings per share increased to 245.68 yen from 233.86 yen in the same period a year ago.
The retailer forecasted net sales in the year to increase 10.9% to 236.80 billion yen and net income to advance 4.1% to 25.38 billion yen from a year ago period.
Osaka Organic Chemical Ind. Ltd
gained 1% to 597 yen after the chemical maker said net sales in the year ending in November slid 0.3% from a year ago to 23.71 billion yen.
Net income in the quarter surged 45.8% to 1.30 billion yen compared to 891 million yen and earnings per share jumped to 56.81 yen from 38.90 yen in the same period a year ago.
Seven & I Holdings Co., Ltd
fell 0.8% to 5,312 yen after the convenience stores operator reported net sales in the nine-month ending in November edged up 0.3% from a year ago to 4.51 trillion yen.
Net income in the year dropped 1.5% to 125.44 billion yen compared to 127.31 billion yen and diluted earnings per share slid to 141.74 yen from 143.88 yen in the same period a year ago.
The convenience stores operator estimated net sales for the year to jump 1.8% to 6.15 trillion yen and net income to advance 5.8% to 183 billion yen.
Star Micronics Co., Ltd
slipped 1.6% to 1,500 yen after the electronic components maker said net sales in the nine-month ending in November soared 11.1% from a year ago to 40.15 billion yen.
Net income in the period tumbled 22.4% to 2.72 billion yen compared to 3.51 billion yen and diluted earnings per share declined to 64.20 yen from 83.05 yen in the same period a year ago.
For the year, the company forecasted net sales to increase 8.9% to 55.50 billion yen and net income to nearly flat at 4.70 billion yen from a year ago period.
Yondoshi Holdings Inc
slumped 3.2% to 2,500 yen after the apparel and accessories maker reported net sales in the nine-month ending in November rose 1.1% from a year ago to 36.30 billion yen.