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Nikkei falls for 6th week, tech shares hurt

Fri Jul 18, 2008 3:04am EDT
 
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*Nikkei marks sixth straight week of falls

*High-tech shares hurt after Google results

*Investors wary, await more U.S. earnings

*Trading firms slip after oil's tumble

By Elaine Lies

TOKYO, July 18 (Reuters) - Japan's Nikkei stock average slipped 0.7 percent on Friday for its sixth straight week of falls as Kyocera Corp (6971.T: Quote, Profile, Research, Stock Buzz) and other tech shares dropped on disappointing results from Google Inc (GOOG.O: Quote, Profile, Research, Stock Buzz).

Mitsubishi Corp (8058.T: Quote, Profile, Research, Stock Buzz) and other trading houses slid after oil fell more than $15 dollars over the three previous days.

Early Tokyo gains on better-than-expected results from JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) evaporated as investors took stock of after-the-bell results from Google, Microsoft (MSFT.O: Quote, Profile, Research, Stock Buzz) and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) which all came in under expectations. More corporate U.S. earnings later in the day including Citigroup's (C.N: Quote, Profile, Research, Stock Buzz) increased natural caution ahead of a three-day weekend.

"The big risk is that Wall Street will plunge, especially the Nasdaq -- the kind of move that Japanese stocks, with their dependence on high-tech shares, are really vulnerable to," said Yutaka Miura, senior technical analyst at Shinko Securities. "The market had factored in that U.S. financial firms would announce poor results, but nobody expected that the same thing could happen to high-techs. There's a lot of nervousness today."

The benchmark Nikkei .N225 closed down 84.25 points at 12,803.70. It lost 1.8 percent on the week.

The broader Topix .TOPX shed 0.9 percent to 1,252.43.

"Longer-term, people are concerned by the fact that even though U.S. authorities have talked a lot about support for Freddie Mac and Fannie Mae, there doesn't seem to be as much positive impact as the market would like," said Seiichi Miura, a strategist at Mitsubishi UFJ Securities.

HIGH-TECHS HURT Electronic parts maker Kyocera slid 2.4 percent to 8,850 yen, becoming the biggest drag on the Nikkei by volume weight. It was followed by industrial robot maker Fanuc Ltd (6954.T: Quote, Profile, Research, Stock Buzz), which shed 1.4 percent to 9,280 yen, and Tokyo Electron Ltd Ltd (8035.T: Quote, Profile, Research, Stock Buzz), which lost 1.8 percent to 6,130 yen.

Among oil-related firms, Mitsubishi Corp shed 2.5 percent to 3,070 yen and fellow trader Mitsui & Co (8031.T: Quote, Profile, Research, Stock Buzz) lost 1.7 percent to 2,035 yen. Itochu Corp (8001.T: Quote, Profile, Research, Stock Buzz) slipped 2.9 percent to 990 yen.

Inpex Holdings (1605.T: Quote, Profile, Research, Stock Buzz) slid 3.4 percent to 1.13 million yen, having lost 8.9 percent for the week.

Mizuho Financial Group (8411.T: Quote, Profile, Research, Stock Buzz) lost 0.6 percent to 541,000 yen and top lender Mitsubishi UFJ Financial Group (8306.T: Quote, Profile, Research, Stock Buzz) was down 0.4 percent to 951 yen.  Continued...

 

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