Tokyo: Nikkei slides as industrials fall on weak earnings, Fed worries simmer

[TOKYO] Japan's Nikkei share average sank on Monday (Feb 7) as disappointing financial results knocked down some industrial companies, while worries about a faster pace of global monetary tightening simmered in the background.

The Nikkei cut some of its morning losses to end the day down 0.70 per cent at 27,248.87, with a 0.99 per cent drop making industrials the hardest hit sector. Heavyweight chipmakers and shippers also declined.

The broader Topix, meanwhile, slipped 0.24 per cent. Growth stocks struggled, with an index of the shares dropping 0.88 per cent, compared to a 0.36 per cent rise for the Topix value index.

Financial shares gained with higher bond yields, after a bumper US employment report on Friday raised expectations for aggressive Federal Reserve interest rate hikes.

Energy shares also rose, boosted by rising crude oil prices.

Despite the overall decline in the Nikkei, winners outnumbered losers 115 to 101, with 9 stocks flat.

"The bullish US jobs report has strengthened concern about aggressive monetary tightening, but market moves should be fairly calm until the Fed's meeting in March," said a market participant at a domestic securities firm.

"This week, the main focus should be earnings." Olympus was the biggest decliner on the Nikkei, slumping 12.22 per cent, weighed down by weak earnings.

Electronics components maker Taiyo Yuden dropped 9.69 per cent, also on disappointing financial results.

Chipmakers Advantest and Tokyo Electron shed 2.74 per cent and 1.37 per cent, respectively.

Nippon Yusen led shippers lower with a 5.31 per cent slide.

Uniqlo store operator Fast Retailing was another notable decliner with a 1.60 per cent retreat.

At the other end, Nissan Chemical was the Nikkei's biggest winner with a 5.61 per cent advance after posting strong financial results.

Tech startup investor SoftBank Group was the biggest gainer by index points with a 2.61 per cent advance. REUTERS