Sony announced it will buy back more than 3 million shares
Japan’s Nikkei is fresh off its worst day since the “Black Monday” crash in 1987 amid a global market selloff. The index also turned negative for the year, brushing off a rising Japanese yen, which hit its highest level against the U.S. dollar since January. Below, let's dive into how today's headlines are impacting Japan-based companies Honda Motor Co Ltd (NYSE:HMC) and Sony Group Corp (NYSE:SONY).
HMC is down 3.2% to trade at $29.07 at last check, and earlier gapped to a 52-week low of $27.69. Overhead pressure at the 60-day moving average rejected the security's rally last week. In the last six months, shares shed more than 14%.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Honda Motor stock's 50-day call/put volume ratio of 5.49 ranks higher than 77% of readings from the past 12 months. This indicates traders have been more bullish than usual, but an unwinding of this optimism may create additional headwinds.
Meanwhile, SONY is bucking the selloff after the tech giant announced it will buy back more than 3 million shares, last seen up 0.5% to trade at $81.99.The equity plummeted after a rally to its highest level since February lost steam around $97, and carry a 13.4% year-to-date deficit.
Short-term options traders lean bearish on Sony stock, per its Schaeffer's put/call open interest ratio (SOIR) that sits in the 91st percentile of readings from the last 12 months.