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Market Update

Topix Enters Correction with Loss of 11%

Author: Hiruki Nakamura
Last Update: 1:01 PM ET October 16 2014

4:30 PM Tokyo Japanese stocks plunged and the Topix index entered into a correction. Topix dropped 2.3% and extended loss to 11% from the September 25. The yen gained 0.2%. Japan Display plunged 18% after the company estimated annual loss.

Japanese market indexes plunged following overnight losses in New York and Europe and the Topix index extended losses, reaching a definition of market correction.

The Topix declined 2.3% and dropped 11% from a six-year high on September 25.

Market indexes on Wall Street have fallen more than 8% and wiped out all the gains in the year so far. The latest decline was the third in the year and the largest that spanned nearly one month.

In Europe, market indexes plunged as much as 11% from the peak in the last five weeks and bond yields of Greece, Italy and Spain shot up.

The Nikkei 225 Stock Average declined 335.14 or 2.2% to 14,738.38 and the broader Topix index slumped 28.17 or 2.3% to 1,195.50.

The yen gained 0.2% and closed at 106.11 against one dollar.

Stocks in Review

Genky Stores, Inc slipped 0.9% to 5,030 yen after the drugstores operator reported net sales in the first-quarter ending in September climbed 13.7% to 15.76 billion yen from 13.86 billion yen a year ago period.

Net income in the quarter surged 161.6% to 455 million yen compared to 174 million yen and earnings per share jumped to 129.77 yen from 49.92 yen in the same quarter of a year ago.

Japan Display Inc tumbled 18.2% to 359 yen after the displays and related products maker forecasted net sales in the first-half ending in September to drop 7.6% to 286.30 billion yen from earlier estimate of 310 billion yen and net income may plunge to 25.3 billion yen from 3.2 billion yen of previous guidance.

For the year, net sales is estimated to fall 1.3% to 740 billion yen from earlier forecast of 750 billion yen and net for the year swung to a loss of 10 billion yen from previous income estimate of 26.8 billion yen.

Separately, today the company decided to close its Fukaya plant in Saitama prefecture of Tokyo and forecasted to record an extraordinary loss in the second-half of the year.

Takashimaya Company, Limited declined 3.5% to 853 yen after the department store operator said sales in September slipped 0.7% and sales at four regional stores of Okayama, Gifu, Yonago and Takasaki dropped 0.8%.

Sales from corporate business segment slumped 3.6% and sales from the cross-media business segment plunged 11.7%.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc