Consumer finance sector lower in Tokyo

Lower than expected profits reports from consumer finance companies sent Tokyo equities markets lower on Wednesday. The Nikkei 225 was 0.8 percent lower to 14,884.07, while the Topix index was down by 0.9 percent to 1,520.44

Consumer finance was not the only sector with losses, however. The electronics sector was down, with NEC falling 0.2 percent to ¥578 and Matsushita Electric Industrial down 0.4 percent to ¥578 even though the two announced they were embarking on a joint venture to develop mobile phone software in an effort to cut costs. Sony dropped 0.6 percent to ¥4,910, while Sharp fell 1.4 percent to ¥1,865 even though it reported operating profits that were up 14 percent.

The high cost of raw materials sent tire maker Bridgestone down by 2.6 percent to ¥2,030.

In the consumer finance sector, Acom dropped 2.8 percent to ¥5,180. Takefuji was down 4.2 percent to ¥5,460, Promise was down 5.3 percent to ¥5,150, and Aiful was 7.6 percent lower to ¥4,230. Sanyo Shinpan was by far the biggest loser in the sector, with a decline of 14.6 percent to ¥4,510 after it said its quarterly earnings were down by 47 percent.

The paper and pulp sector was mixed, with Oji Paper up 1.4 percent to ¥672 but Hokuetsu Paper Mills 2.7 percent lower to ¥768. Hokuetsu is in the process of trying to repel a takeover attempt from Oji.

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