NIKKEI 225 (NI225): Conflict Around The Falling Yen

The weak yen should help overseas, but Nissan underperformed its Japanese rivals this past year — a problem that a falling currency won’t solve.

Nissan Motor Co., Ltd. (ADR) (OTCBB:NSANY)’s done better this year than electronics maker Advantest Corp (ADR) (NYSE:ATE), but this stock absolutely blew up over the past week. Advantest Corp (ADR) (NYSE:ATE)’s shares shot higher by more than 9%, wiping out pessimism over the company’s weak earnings released a few weeks ago. Advantest’s net loss and operating profit both fell below its guidance, and despite this week’s investor optimism, the future’s murky for this company. Financial site TheStreet downgraded the stock last week, citing Advantest Corp (ADR) (NYSE:ATE)’s falling earnings, among other issues.

It was anything but a good week for Japanese telecom carrier NTT Docomo Inc (ADR) (NYSE:DCM), however. The wireless leader saw its stock fall 1.4% over the past five days even after reports emerged that Sony Corporation (ADR) (NYSE:SNE) could be releasing a new phone, the Xperia A, under NTT Docomo Inc (ADR) (NYSE:DCM)’s network. An FCC filing has shown the Xperia A with a 5-inch screen, and NTT Docomo Inc (ADR) (NYSE:DCM) investors could know more when the company unveils its mobile offerings for the summer on May 15.

The article The Surging Nikkei Takes a Ride on a Plunging Yen originally appeared on Fool.com is written by Dan Carroll.

Fool contributor Dan Carroll and The Motley Fool have no position in any of the stocks mentioned.

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