Earnings Concerns over Pioneer Corp. (ADR: PIO) and Others along with Profit Taking (Trend Micro, ADR: TMIC) Bring Nikkei225 Index Down Slightly after New Intraday High

Earnings concerns over consumer electronics company Pioneer (PIO) sparked a sell-off in this sector of the Japanese market as well as in tech. Some investors began to take profits as they felt the recent run-up of the Nikkei may have happened too fast. Concern over Pioneer follows the announcement last Wednesday by Sanyo Electric Co (SANYY) that it had to revise its earnings loss forecast significantly from US$814 million to US$1.24 billion for the Japanese fiscal year ending March 31, 2006. The Nihon Kezai Shimbun reported today that Pioneer expected to lose 10 billion yen (US$87.9 million at Y113.8/US$1) for the year ending March 31, 2006. Pioneer's Tokyo Stock Exchange traded shares finished the day down 1.81%.

Yesterday's biggest gainer Trend Micro (ADR: TMIC) was set back by profit takers. Its Tokyo Stock Exchange traded shares finished down 2.62%.