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 lost 0.86% to 27,203.66 as of the midday break, with a 1.28% drop making industrials the hardest hit sector. Heavyweight chipmakers and shippers also tumbled.

The broader Topix, meanwhile, slid 0.42%. Growth stocks struggled, with an index of the shares dropping 1.10%, compared to a 0.21% rise for the Topix value index.

Financial shares rose 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.

Tokyo stocks reverse losses to end higher

Despite the hefty declines for the Nikkei overall, the number or winners and losers was almost evenly balanced at 111 to 110, with four 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."

Electronics components maker Taiyo Yuden was the biggest decliner on the Nikkei, slumping 10.82% following disappointing financial results.

Olympus Corp dropped 9.62%, also weighed down by weak earnings.

Chipmakers Advantest and Tokyo Electron shed 3.59% and 1.68%, respectively.

Nippon Yusen led shippers lower with a 4.29% slide.

Uniqlo store operator Fast Retailing's 1.72% retreat made it the Nikkei's biggest drag by index points.