TOKYO: Japan’s Nikkei share average fell on Monday as chip stocks followed US peers lower and a retreat in crude oil weighed on energy companies.
Worries about the Chinese economy also marred overall market sentiment, while exporters failed to get a boost from the yen’s drop to a nine-month low beyond 145 per dollar.
Financial results continued to produce outsized losers and winners on the final day of the current reporting period, with ship and machinery maker Mitsui E&S Co tumbling 8.7% to lead Nikkei decliners by a wide margin, while Nippon Sheet Glass climbed 10.8% to be the top performer.
The Nikkei sank 0.96% to enter the midday break at 32,160.30, close to the session low, on Japan’s first trading day following a holiday-extended weekend.
Of the Nikkei’s 225 components, 157 fell versus 66 that rose, with two flat.
The broader Topix lost 0.75% to 2,286.15.
“The strong individual stock moves on the back of earnings reports will continue into tomorrow, but that will then gradually give way to a focus on whether the US economy slows down more than thought, and the direction for China’s economy,” said Maki Sawada, a strategist at Nomura Securities.
The Japanese earnings season reached a crescendo of around 850 companies last Thursday, with about 330 over the course of Monday.
The US and China will publish retail sales data on Tuesday, with China also releasing industrial production figures.
Chinese economic indicators have seen a string of disappointing results in recent weeks, amplifying the case for stronger stimulus measures from Beijing.
Japanese airline shares, which in other circumstances may have benefited from China’s weekend decision to lift restrictions on group travel to Japan, were weaker on Monday, with ANA Holdings losing 1.2%.
Automakers declined, with Toyota off 0.6% and Honda sliding 3.6% to give back about half of its big earnings-driven gains from the previous session.
Chip-testing equipment maker Advantest dropped 3.7%. Energy company Inpex skidded 3.8%.