Tue Jan 31, 2012 9:04pm EST
* Japan stocks seen as undervalued
* Honda up, despite slashing forecast
* ANA soars on profit outlook hike
* Ricoh tumbles after forecasting red ink, dividend cut
By Mari Saito
TOKYO, Feb 1 (Reuters) - The Nikkei share average was flat on Wednesday holding onto strong gains made in January and shrugging off worse-than-expected earnings from major exporters like Honda Motor Co, with some saying that earnings gloom has already been priced in to the market.
Honda, trading at 70 percent of its average 90-day full day volume, slashed its annual profit guidance to 200 billion yen($2.6 billion), its lowest level in three years, hurt by the
cost of natural disasters in Japan and Thailand and a strong yen. But in an indication that the market was beginning to take these type of earnings figures in its stride, Honda's stock was up 0.5 percent at 2,679 yen after falling as much as 2.8 percent
in early trade.
Copier manufacturer Ricoh slid 6 percent
after saying it now expects to post annual losses on both a net and operating basis and it would slash its annual dividend plan.
The yen will also be in focus on Wednesday, market players said, after the dollar slipped as low as 76.13 yen overnight, its lowest since Japan intervened in currency markets last October, spreading fears that the central bank could step into markets again.
Original Post