TOKYO: Japan's Nikkei share average sank on Monday 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% at 27,248.87, with a 0.99% drop making industrials the hardest hit sector. Heavyweight chipmakers and shippers also declined.
The broader Topix, meanwhile, slipped 0.24%. Growth stocks struggled, with an index of the shares dropping 0.88%, compared to a 0.36% rise for the Topix value index.
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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 nine 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 Corp was the biggest decliner on the Nikkei, slumping 12.22%, weighed down by weak earnings.
Electronics components maker Taiyo Yuden dropped 9.69%, also on disappointing financial results.
Chipmakers Advantest and Tokyo Electron shed 2.74% and 1.37%, respectively.
Nippon Yusen led shippers lower with a 5.31% slide. Uniqlo store operator Fast Retailing was another notable decliner with a 1.60% retreat.
At the other end, Nissan Chemical Corp was the Nikkei's biggest winner with a 5.61% advance after posting strong financial results.
Tech startup investor SoftBank Group was the biggest gainer by index points with a 2.61% advance.
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