Latest news with #FastRetailing
Business Recorder
14 hours ago
- Business
- Business Recorder
Nikkei falls after sharp gains as US-Japan trade talk weighs
TOKYO: Japan's Nikkei share average slipped on Tuesday as investors sold stocks after the index's sharp gains, and uncertainties around the US-Japan trade talks weighed on sentiment. As of 0210 GMT, the Nikkei was down 1.1% at 40,048.14. It is set to snap a five-session winning streak that pushed it to its highest level since mid-July in the previous session. The broader Topix slipped 0.87% to 2,828.15. 'The market was overheated, but there were some factors that boosted demand last month,' said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. Japanese equities mirrored a rally in US stocks in the past several sessions, but demand was also supported by dividend payouts investors received after corporate shareholders' meetings in June, as well as corporate share buybacks, said Ueno. The Nikkei rose 6.6% in June, marking its biggest monthly gain since February 2024. In the last five sessions of June, the index gained 5.5%. The Relative Strength Index (RSI), a technical measure for an investment momentum, dropped to 67.6 on Tuesday from the 'overbought' condition of 74.5. Meanwhile, US President Donald Trump expressed frustration with US-Japan trade negotiations on Monday, casting clouds over ongoing trade talks between the two countries. Japan's Nikkei ends at over 11-month high US Treasury Secretary Scott Bessent also warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations. 'Investors weighed trade factors, but if the outlook of the talks becomes clear, then the market gauges stocks with fundamentals and the Nikkei has the potential to rise further,' said Ueno. Uniqlo-brand owner Fast Retailing fell 3.3% to drag the Nikkei the most. Chip-equipment maker Tokyo Electron slipped 1.52%. Bucking the trend, cable maker Fujikura jumped 2.2% to become the biggest percentage gainer on the Nikkei.
New Straits Times
16 hours ago
- Business
- New Straits Times
Nikkei falls after sharp gains as US-Japan trade talk weighs
TOKYO: Japan's Nikkei share average slipped on Tuesday as investors sold stocks after the index's sharp gains, and uncertainties around the US-Japan trade talks weighed on sentiment. As of 0210 GMT, the Nikkei was down 1.1 per cent at 40,048.14. It is set to snap a five-session winning streak that pushed it to its highest level since mid-July in the previous session. The broader Topix slipped 0.87 per cent to 2,828.15. "The market was overheated, but there were some factors that boosted demand last month," said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. Japanese equities mirrored a rally in US stocks in the past several sessions, but demand was also supported by dividend payouts investors received after corporate shareholders' meetings in June, as well as corporate share buybacks, said Ueno. The Nikkei rose 6.6 per cent in June, marking its biggest monthly gain since February 2024. In the last five sessions of June, the index gained 5.5 per cent. The Relative Strength Index (RSI), a technical measure for an investment momentum, dropped to 67.6 on Tuesday from the "overbought" condition of 74.5. Meanwhile, US President Donald Trump expressed frustration with US-Japan trade negotiations on Monday, casting clouds over ongoing trade talks between the two countries. US Treasury Secretary Scott Bessent also warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations. "Investors weighed trade factors, but if the outlook of the talks becomes clear, then the market gauges stocks with fundamentals and the Nikkei has the potential to rise further," said Ueno. Uniqlo-brand owner Fast Retailing fell 3.3 per cent to drag the Nikkei the most. Chip-equipment maker Tokyo Electron slipped 1.52 per cent. Bucking the trend, cable maker Fujikura jumped 2.2 per cent to become the biggest percentage gainer on the Nikkei.
Mint
17 hours ago
- Business
- Mint
Nikkei falls after sharp gains as US-Japan trade talk weighs
TOKYO, - Japan's Nikkei share average slipped on Tuesday as investors sold stocks after the index's sharp gains, and uncertainties around the U.S.-Japan trade talks weighed on sentiment. As of 0210 GMT, the Nikkei was down 1.1% at 40,048.14. It is set to snap a five-session winning streak that pushed it to its highest level since mid-July in the previous session. The broader Topix slipped 0.87% to 2,828.15. "The market was overheated, but there were some factors that boosted demand last month," said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. Japanese equities mirrored a rally in U.S. stocks in the past several sessions, but demand was also supported by dividend payouts investors received after corporate shareholders' meetings in June, as well as corporate share buybacks, said Ueno. The Nikkei rose 6.6% in June, marking its biggest monthly gain since February 2024. In the last five sessions of June, the index gained 5.5%. The Relative Strength Index , a technical measure for an investment momentum, dropped to 67.6 on Tuesday from the "overbought" condition of 74.5. Meanwhile, U.S. President Donald Trump expressed frustration with U.S.-Japan trade negotiations on Monday, casting clouds over ongoing trade talks between the two countries. U.S. Treasury Secretary Scott Bessent also warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches despite good-faith negotiations. "Investors weighed trade factors, but if the outlook of the talks becomes clear, then the market gauges stocks with fundamentals and the Nikkei has the potential to rise further," said Ueno. Uniqlo-brand owner Fast Retailing fell 3.3% to drag the Nikkei the most. Chip-equipment maker Tokyo Electron slipped 1.52%. Bucking the trend, cable maker Fujikura jumped 2.2% to become the biggest percentage gainer on the Nikkei. This article was generated from an automated news agency feed without modifications to text.
Business Times
2 days ago
- Business
- Business Times
Nikkei 225 expected to trend higher if trade deals are inked
The Nikkei 225 Index Futures, traded in standard, mini, and micro contracts, is a derivative instrument based on Japan's flagship equity benchmark, the Nikkei 225 Index. Its top three constituents by weight are Fast Retailing (Uniqlo), Tokyo Electron (semiconductor equipment), and Advantest (semiconductor testing solutions). In May, Japanese equities rallied by 5.36 per cent in JPY terms, supported by the 90-day pause in US President Donald Trump's reciprocal tariffs and the lowering of China tariffs from 145 per cent to 30 per cent. This easing of trade pressure supported Japan's export-heavy companies and lifted market sentiment. At the same time, soaring Japanese Government Bond (JGB) yields posed a threat to equities. Higher yields narrow the earnings-yield gap, eroding the equity risk premium and encouraging investors to rotate to the safety of bonds. They also tend to raise borrowing costs and squeeze corporate profitability, further weighing on Japanese companies. On May 22, the 30-year JGB yield hit an all-time high of about 3 per cent, fuelled by expectations of Bank of Japan (BOJ) tightening and persistent inflationary pressures. Since then, yields have cooled, aided by the BOJ's decision to leave policy rates unchanged and to taper bond purchases. This stance should help limit further spikes in funding costs, preserving the equity risk premium and lending near-term support to equities. Additionally, a narrower-than-expected Q1 real GDP contraction reinforces the BOJ's cautious path towards gradual policy normalisation, keeping a lid on JGB yields. While macro headwinds remain, especially with the US being Japan's largest export market, we believe there is material upside potential if bilateral negotiations progress and trade deals are inked. A key risk, however, lies in currency fluctuations, particularly a stronger yen. For example, Toyota estimates that every 1 yen move in USD/JPY shaves roughly 50 billion yen from operating profit. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Looking ahead to 2H 2025, monetary policy, US fiscal and trade decisions, and geopolitics will dominate the global market narrative. Key milestones include the Jul 9 deadline for President Trump's tariff review, Middle-East tensions, progress on the China-US trade dialogue, and the Fed's rate path. Despite these risk factors, we believe the structural bull case for Japan equities remains intact. Relative valuation is attractive, with the Nikkei 225 trading at an approximate 30 per cent discount to the S&P 500 and below its own five-year average multiple of 25.4x. We expect uncertainty to linger through 2H 2025 but see room for multiple convergence as investors reallocate capital to non-US markets. Structural catalysts such as the AI narrative, corporate governance reform, cross-holding unwinds, rising inflows from the Nippon Individual Savings Account programme, and an unprecedented wave of shareholder activism continue to support multiple expansion. While near-term profit pressure may persist for exporters due to currency risk, these structural shifts are fostering a long-term re-rating environment. Both the Tokyo Stock Exchange and the Japanese government are pressing companies to improve valuations. Tactics range from share buybacks to more unconventional efforts such as gift distributions at AGMs to cultivate retail-investor loyalty. Heightened shareholder activism is compelling management teams - long criticised for cash hoarding - to deliver credible growth strategies, fostering conditions for a sustained re-rating and long-term corporate performance in an increasingly uncertain business climate. Nikkei 225 technical outlook The daily chart of the Osaka Nikkei 225 Mini Futures shows the contract rebounding from its Apr 7 low of 30,650 and riding an ascending trend line that intersects the 50-day moving average (37,111). This moving average appears poised to cross above the 100-day moving average (37,200). The latest close at 38,875, comfortably above 38,470, aligns with the 76.4 per cent Fibonacci extension drawn from the August 2024 low, January 2025 high, and April 2025 low. Looking ahead, sustaining this breakout opens the door to 40,885 (100 per cent extension) and 43,300 (123.6 per cent). Immediate support lies at 36,975 (61.8 per cent), with a deeper floor at 35,710 (50 per cent). Ultimately, we believe a temporary tariff détente, stabilising bond yields, and a constructive technical profile position the Nikkei 225 futures for a test of the 41,000 region, provided the Jul 9 tariff deadline does not reignite trade frictions and JGB yields remain contained. The writer is senior investment analyst at Phillip Nova
Fashion Network
22-06-2025
- Business
- Fashion Network
Princesse tam tam and Comptoir des Cotonniers heading for receivership
Another major French fashion player is under threat. has learnt that fashion retailer Comptoir des Cotonniers and lingerie chain Princesse tam tam are heading towards receivership proceedings. The owner of the two chains, Japanese group Fast Retailing, is about to file for receivership for both. The application is set to be filed with the Paris trade court on Friday June 20, sources close to the matter have told The two chains, bought by Fast Retailing in 2005, have been battling the fashion market's headwinds for several years, having been reorganised three times in succession, in 2018, 2021 and 2023. The move that will make it easier for the two chains to go into receivership was made by Fast Retailing in September 2024, when it decided to merge the two businesses into a single corporate entity, under the Fast Retailing France company. The latter doesn't include the lucrative business of Uniqlo in France, whose 30 stores are run by a European holding company based in London. With the reorganisation carried out two years ago, Princesse tam tam deployed a redundancy plan that led to the closure of 27 out of 69 stores, for a loss of 84 out of 235 jobs, while Comptoir des Cotonniers closed 28 out of 67 stores and slashed 101 out of 272 jobs. The chains are currently operating a total of nearly 90 stores, approximately 50 for Princesse tam tam and about 40 for Comptoir des Cotonniers. In spring 2024, in an effort to revive their fortunes, the chains, led by Kunii San, announced they were cutting retail prices by approximately 30%, in order to attract a broader clientèle, notably 25 to 35-year-olds. They also forged closer links with Uniqlo, dropping joint capsule collections and opening shop-in-shops within Uniqlo stores. Comptoir des Cotonniers, which became part of Fast Retailing exactly 20 years ago, was an extremely popular brand in the 2000s and 2010s in France, characterised by a casual-chic style and adverts chiefly featuring mothers and daughters. The brand was founded in 1995 by the Elicha family, opening its first stores in the Toulouse area. Princesse tam tam was created 10 years earlier, in 1985, designed by the sisters Loumia and Shama Hiridjee. It carved out a niche for itself in the French fashion landscape with its brightly coloured underwear and swimwear featuring successful prints, taking a sideways step from classic French lace items. Another two fashion chains active in the French retail sector are therefore adding their names to the list of defaults, following the first tremor caused by Camaïeu going into liquidation in 2022. Recently, Jennyfer has liquidated most of its assets, as did Café Coton, while Naf Naf and André have both been placed in receivership. By initiating these proceedings, Fast Retailing has made the decision to no longer give financial support to Princesse tam tam and Comptoir des Cotonniers, and to stop feeding them cash. However, the group is doing extremely well on a global scale. In H1 of fiscal 2024/25, its net income jumped 19.2% to reach ¥233.5 billion (€1.4 billion). Revenue in the period grew by 12% to ¥1.790 trillion (€10.7 billion).
