The growing distress about the profit among investors led to a decline in many stocks in the Asian market. The gloom of anxiety engulfed the minds of traders, when the shares of biggies like Nikon Corp. and News Corp. fell drastically.
Nikon reached an all-time low since 1985, as this Japanese corporation decreased its profit forecast after the demand of its products went downhill in Europe. News Corp., run by Rupert Murdoch, also saw a loss of around 2.8 %. The declining earnings were a result of low ratings for its popular shows like “American Idol” and “X Factor.” Positive news came after the first-quarter profit of National Australia Bank rallied, giving its shares a boost of 2 %.
Japan’s Nikkei 225 witnessed a loss of 0.9 %. The drop in the Nikkei 225 Stock Average came as a surprise for investors who were confident about its strong position that was maintained for four years. The shares of Kubota Corp., one of the leading tractor manufacturers in Japan, saw the biggest loss as it went down by 3.6 %. The predicted level of the net income of Kubota Corp. was supposed to be better as per the financial analysts, but the results defied the estimates. Tokyo’s MSCI Asia Pacific Index wasn’t any better, and it also plunged by 0.2 %.
Investors found some optimism when the S&P/ASX 200 Index in Australia rallied by 0.3 %. This little yet positive change came as the Australian companies raised the payrolls. U.S. stocks also surged, as the net profits were better than the predicted level. The shares of Time Warner Inc. ascended by 4.1% as the company’s earnings increased with affiliate charges from cable-TV service providers. The stock of Walt Disney Co. also increased slightly by 0.4 %, after the company’s interactive unit profited for the first time since 2009.
The S&P 500 reached the highest level in 2013, as it rose by 6 percent after the companies’ profits were better than the analyst’s predictions due to the conciliation on budget made by U.S. lawmakers. Still, the overbought situation of the stock market ruled out any scope for positive outlook.