Morning Forex Fundamental: JPY

Morning Forex Fundamental: JPY

'After factoring in the projected negative impact of a strong yen, disruption in China and continuing weak market conditions in Europe, Nissan has revised downward its full-year forecast' - Nissan

Nissan cut full-year forecast by 20%

Impact: Medium

Japanese second largest manufacturer, Nissan, cut its profit forecast for this fiscal year, as sales in China tumbled 35% in September, amid anti-Japan sentiment. Company’s first-half profit slipped 2.8% to 178.3 billion, while its full-year forecast was slashed by 20%. Japanese carmaker tips net profit for the year to March of only 320 billion yen, down from a previous estimate of 400 billion yen, also saying they expect to sell only 5.08 million vehicles by the end of this year, which is 270,000 less than it was originally expected.

'After factoring in the projected negative impact of a strong yen, disruption in China and continuing weak market conditions in Europe, Nissan has revised downward its full-year forecast,' the company said in a statement.

'We are gradually seeing signs of recovery [in China]. Customers are gradually coming back to dealerships,' said chief operating officer Toshiyuki Shiga.

The Nikkei 225 Stock Average plummeted 1.33 per cent, or 119.16 points, to 8,853.73. The broader Topix Index fell 1.20 per cent, or 8.94 points, to 736.77.