Tokyo's Nikkei down at berak after high-tech sell-off

TOKYO: Tokyo's Nikkei fell Monday morning as technology shares took a hit following a sell-off of US high fliers at the end of last week.

Market heavyweight SoftBank, which closed at a 17-year high on Friday, fell 2.45 percent to 9,243 yen, while chip-making devices maker Tokyo Electron dropped 2.66 percent to 16,455 yen.

"There's a chance US internet technology stocks that have propelled a global stock rally will now serve as a buzzkill," said Mitsuo Shimizu, deputy general manager at Japan Asia Securities.

"Because anticipation over Apple's new iPhone had boosted related chip and electronics company shares, it'll likely be a minus for these stocks too," he told Bloomberg News.

The Nikkei 225 slipped 0.36 percent, or 71.46 points, to 19,941.80 by the break but the Topix index of all first-section issues rose 0.21 percent, or 3.38 points, to 1,595.04.

On Wall Street the blue-chip Dow climbed to a new record Friday but the Nasdaq fell nearly two percent after tech giants such as Apple, Amazon and Google Parent Alphabet all lost at least three percent.

Analysts described the market movements as a rotation in which investors were taking profits from highly valued sectors and putting the funds in areas that have underperformed, such as financials, energy and retailers.

In other Tokyo trading, Apple supplier Murata Manufacturing fell 2.56 percent to 15,595 yen and display maker Sharp sank 2.48 percent to 393 yen.

Sony fell 1.21 percent to 4,066 yen.

Toshiba jumped 8.24 percent to 325.6 yen after news reports said US-based Western Digital was upping its bid to purchase the struggling Japanese group's prized semiconductor business.

Fujifilm rose 2.06 percent to 4,046 yen as it said accounting irregularities at an overseas sales unit had only a "minor" impact on its bottom line.

Bank shares rose with Mitsubishi UFJ Financial up 0.87 percent at 741.1 yen and Sumitomo Mitsui rising 0.74 percent to 4,299 yen.

In currency markets, the euro held up as French President Emmanuel Macron's party looks set to win an overwhelming majority after Sunday's first round of voting for the National Assembly.

The single currency fetched $1.1209 on Monday against $1.1197 in New York Friday.

The dollar was changing hands at 110.22 yen against 110.26 yen in US trade.