27 April 2004, 09:23  Japanese stocks fall ahead of earnings

Asian stocks fell on Tuesday as investors locked in profits ahead of earnings from key companies such as Sony Corp <6758.T>, while the euro held on to most of its gains on a surprise rise in German business morale. Most major Asian stock indices fell, with Japan's Nikkei <.N225> down 1.1 percent by midday at 12,025.21. Electronics makers Sony Corp <6758.T> and Sharp Corp <6753.T> fell 1.7 percent while chip maker Toshiba Corp <6502.T> dropped 0.5 percent ahead of earnings later in the day and after recent steep gains based on an outlook for solid results. Advantest Corp <6857.T>, Japan's top maker of microchip testing equipment, dropped 3.2 percent. "For the current earnings season, there's a tendency for investors to move ahead of actual announcements," said Tsuyoshi Segawa, an equity strategist at Shinko Securities. "Those who are hesitant to buy beforehand are losers." An MSCI index of Asia Pacific shares outside Japan was down 0.3 percent by 0250 GMT as concern over a fresh outbreak of SARS and a drop on Wall Street weighed on markets. Taiwan shares <.TWII> fell 1.2 percent, pressured by a 1.6 percent fall in contract microchip maker TSMC <2330.TW> and a 1.5 percent drop in rival United Microelectronics Corp (UMC) <2303.TW>. South Korean shares were down 0.7 percent, while Australia slipped 0.3 percent
EURO HOLDS GAINS
A survey by Germany's Ifo Institute showed business morale in Europe's biggest economy had unexpectedly risen in April, helped by recovering confidence among retailers and manufacturers. The euro recovered from a five-month low near $1.1760, rising to $1.1885 in New York. As of 0250 GMT, it was around $1.1845 , little changed from the late New York level. Against the Japanese currency, the euro stood at 128.62 yen , also little moved from late U.S. trade. The dollar was trading at 108.58 yen , compared with 108.70 yen in New York. Looking ahead, dealers will be tuning in to U.S. consumer confidence data for April due at 1400 GMT. Analysts polled by expected a dip to 88.0 from 88.3 in March. On Wall Street, the Dow Jones industrial average <.DJI> eased 0.27 percent. The Nasdaq Composite Index <.IXIC> dropped 0.63 percent. Japanese government bond (JGB) prices firmed slightly as Tokyo stocks eased ahead of major earnings announcements. The yield on the benchmark 10-year cash JGB <0#JPTSY=JBTC> was down one basis point at 1.505 percent. Spot gold was quoted at $396.90 an ounce, compared with $395.55 last quoted in New York. Oil slipped five cents a barrel to $36.91.///

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