Sony Corp. (6758) dropped to its lowest in 25 years in Tokyo trading on concerns that a weaker euro may damp the repatriated value of Japanese exporters’ sales in Europe.
The stock dropped as much as 4.4 percent to 1,214 yen and changed hands at 1,222 yen as of 10:07 a.m. That’s the lowest level for the stock since April 25, 1987, according to data compiled by Bloomberg. Japan’s benchmark Nikkei 225 Stock Average declined 2.6 percent.
Sony led declines of Japanese electronics makers as the euro fell to a three-month low against the yen after French Socialist Francois Hollande was elected president and Greek voters flocked to anti-bailout parties, stoking concern austerity efforts in Europe may be derailed. Canon Inc. (7751), which generates about 30 percent of its revenue in Europe, fell as much as 2.9 percent while Panasonic Corp. (6752) fell by 3.5 percent.
“The French election is causing concerns that a weaker euro will bring negative impacts to exporters and uncertainties over Europe’s economy going forward,” said Keita Wakabayashi, an analyst at Mito Securities Co. “Sony’s impact from the euro’s decline is fairly large compared to others.”
Sony, which makes about 21 percent of its annual revenue in Europe, loses about 6 billion yen of annual operating profit for every 1 yen decline in the value of the euro, according to Mami Imada, a Tokyo-based spokeswoman.
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