ASIA MARKETS: Japan Stocks Slide On Firm Yen, Some Weak Results

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Japanese stocks set out on track for a third straight day of losses Friday as exporters skidded after the yen strengthened overnight in U.S. trade, with Nissan Motor Co. and Advantest Corp. both losing ground after posting earnings results.

The Nikkei Stock Average and the broader Topix each slumped 1.7% in early trade.

Their decline came as the U.S. dollar (USDJPY) stumbled toward the Yen99-level after straddling Yen100 Thursday in Asian trading.

Still, the yen came off its highs after official data showed June consumer prices rose in Japan after the central bank launched a monetary stimulus on an unprecedented scale earlier this year.

The sharp losses stood out against modest moves in other regional markets, with South Korea's Kospi flat, and Australia's S&P/ASX 200 rising 0.3% on a positive lead from Wall Street.

"The global share-market rally is struggling for momentum as lingering concerns about Chinese growth and mixed corporate earnings in Europe and the U.S. prompted global investors to take profits and wind back risk trades," said Perpetual head of investment market research Matthew Sherwood.

U.S. stocks rose overnight, with the Nasdaq Composite (RIXF) pulling higher after better-than-expected results from Facebook Inc. (FB)

The losses in Tokyo came as investor attention turned to earnings for the quarter ended June 30 and companies' forecasts.

Shares of Advantest Corp. (ATE) plunged 9.6% after the technology firm on Thursday reported a net loss, compared with a profit in the year-ago period.

Auto major Nissan (NSANY) lost 2.3% despite reporting a 14% increase in quarterly profit, while Suzuki Motor Corp. (SZKMY) slid 2.2% in a downbeat market despite upbeat results at its Indian subsidiary.

Banks also retreated, shrugging off a Nikkei newspaper report the nation's three so-called megabanks had likely generated a 20% increase in quarterly profits.

Among the trio, Sumitomo Mitsui Financial Group Inc. (SMFJY) lost 2.5% and Mitsubishi UFJ Financial Group Inc. (MTU) tumbled 3.3%, while Mizuho Financial Group Inc. (MFG) dropped 1.9%.

Mining stocks were mostly under pressure in Sydney, extending losses in the wake of data showing a further deterioration in China's manufacturing sector.

Shares of diversified miner BHP Billiton Ltd. (BHP) fell 0.7%, and gold producer Newcrest Mining Ltd. (NCMGF) dropped 0.8%.

However, gains for banks put the benchmark S&P/ASX 200 on course for a fifth straight day of gains. Australia & New Zealand Banking Group (ANZBY) rose 1.1%, and National Australia Bank Ltd. (NABZY) advanced 0.6%.

Over in Seoul, shares of Samsung Electronics Co. (SSNLF) slipped 0.2%. The world's largest chip maker by sales said its second-quarter profit rose 50% to hit a fresh record, but its earnings momentum showed signs of slowing in terms of its key smartphone segment.

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