Nikkei ends lower ahead of earnings rush, Mitsubishi Motors slumps

* Trade slow with upcoming earnings in focus
* Mitsubishi Motors plummets 12% after dismal earnings

TOKYO, July 28 (Reuters) - Japanese shares ended lower on
Tuesday as investors maintained a cautious stance ahead of
corporate earnings, while Mitsubishi Motors plunged to an
all-time low after the carmaker posted dismal quarterly numbers.
The Nikkei share index .N225 fell 0.26% to 22,657.38,
while the broader Topix .TOPX lost 0.48% to 1,569.12 .TOPX .
The index initially was buoyed by a rebound in U.S.
technology shares on hopes of more fiscal stimulus from
Washington. .N
Languid trade provided a tailwind in the afternoon,
however, with many investors on the sidelines ahead of a peak in
Japanese earnings announcements this week and next.
The market was also weighed down by coronavirus worries as
Tokyo registered 270 new COVID-19 cases. Among the companies that announced quarterly results on
Monday, Mitsubishi Motors 7211.T tumbled 12.64% to a record
low after the carmaker posted dismal sales in its key Southeast
Asian market and forecast a huge loss for this financial
year. Nissan Motor 7201.T fell 4.63% following a Bloomberg
report that cited the automaker will forego annual dividend this
fiscal year. The automaker, which has an alliance with Mitsubishi Motors,
is due to announce its earnings after market close.
While the coronavirus crisis has hammered the global auto
industry, "Japanese automakers have been doing relatively well",
said Hisashi Arakawa, deputy head of investment management at
Aberdeen Standard Investments in Tokyo.
"However, Mitsubishi Motors was already facing many business
challenges even before the pandemic hit," he said, noting that
the earnings results and the company's decision to forego
dividend payment may have also caused the stock price to
decline.
Hitachi Construction 6305.T dropped 6.23% after its
disappointing April-June earnings.
On the other hand, Koei Tecmo Holdings 3635.T jumped
13.45% to a record high after the video game company reported
brisk profit growth.
Stanley Electric 6923.T added 4.38% after the automobile
lamps manufacturer gave a stronger annual outlook than expected.