TOKYO: Tokyo shares fell 0.98 percent in the morning session Friday following losses on Wall Street as weak Chinese manufacturing numbers weighed on investor sentiment.
The Nikkei index at the Tokyo Stock Exchange lost 99.36 points to 10,027.72 by the break, while the Topix index of all first-section shares dropped 0.89 percent, or 7.64 points, to 854.43.
Banking giant HSBC said Thursday that manufacturing activity in China fell to a four-month low in March, adding to concerns over slowing growth in the world's second-biggest economy.
That triggered drops in US and European markets and deflated investor sentiment in Asia, said Kenichi Hirano, operating officer at Tachibana Securities.
Investors were balancing hopes for more economic stimulus in China with worries over a global economic slowdown and continued fears about the eurozone's sovereign debt problems, Hirano told Dow Jones Newswires.
A stronger yen could weigh on exporters in Tokyo, he added. "The key point is whether the (Nikkei) index can maintain the 10,000 level," he said.
Sony shares were down 3.05 percent at 1,682 yen in early afternoon trade, a day after saying it was selling its chemical products division as part of a major overhaul at the struggling electronics and entertainment giant.
On Wall Street the Dow Jones Industrial Average lost 0.60 percent, while the S&P 500 fell 0.72 percent and the tech-rich Nasdaq slipped 0.39 percent.
The dollar stood at 82.83 yen from 82.50 yen in New York Thursday. The euro was at $1.3204 and 109.38 yen, firming from $1.3185 and 108.89 yen in New York.
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