TOKYO: Japan’s Nikkei share average ended lower on Monday, as heavyweight technology stocks tracked weakness in the Nasdaq in the previous session, while stocks of companies with dim earnings outlook weighed on investor sentiment.
The Nikkei share average fell 0.88% to close at 27,427.32, after falling to as low as 27,266.94, its lowest since Jan. 25.
The Nasdaq ended lower on Friday, as megacap growth stocks came under pressure after Treasury yields pointed to higher interest rates and shares of ride-hailing firm Lyft plunged following a downbeat profit forecast.
Chip equipment maker Tokyo Electron slipped 4.39%, becoming the biggest drag on the Nikkei.
Its peer Advantest fell 1.57%, while technology investor SoftBank Group lost 1.12%. Shiseido slipped 3.97% after the cosmetic maker forecasted 18% decline in its annual net profit.
Olympus lost 2.25% after the medical equipment maker lowered its annual net profit forecast.
Olympus dragged precision instrument makers’ stocks 2.1% lower, making it the worst performer among the 33 industry sub-indexes on the Tokyo Stock Exchange.
The broader Topix was down 0.47% to 1,977.67. Its declines were limited as Honda Motor rose 4.54% after the automaker posted a better-than-expected 22% rise in its third-quarter operating profit.
Mitsubishi UFJ Financial Group rose 0.89%, lifting the banking industry 0.63% higher, amid expectations that the Bank of Japan may tweak its ultra-low monetary policy under the new governor.
Japan’s government is likely to appoint academic Kazuo Ueda as the next Bank of Japan governor, a surprise choice that could see the country finally align with other major economies in raising interest rates.
Oil explorers jumped 5.48% and was the best performing sector among the industry groups after oil prices rose on Friday.
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