Stocks

Nikkei falls as banks slide; Kyocera posts 1.5% weekly drop

Reuters TOKYO | Updated on February 02, 2018 Published on February 02, 2018

For the week, Nikkei has dropped 1.9 per cent. File Photo   -  Reuters

Nikkei drops 0.9%, Topix 0.3%

Japan's Nikkei share average fell on Friday on weakness in most sectors, with banking stocks down on worries that domestic bond yields would be kept low after the central bank conducted a special bond purchase operation to curb rising yields.

Kyocera Corp tumbled 6.6 per cent and was the biggest negative contributor to the Nikkei after it cut its annual net profit outlook.

The Nikkei dropped 0.9 per cent to 23,274.53. For the week, it dropped 1.5 per cent. The broader Topix shed 0.3 per cent to 1,864.20, with 26 of its 33 sectors falling.

The Bank of Japan on Friday conducted a special bond purchase operation to stem the rise in Japanese bond yields, offering to buy an unlimited amount of JGBs with more than five to ten years left to maturity.

Bank shares, which rose the previous day after some banks posted upbeat earnings results, lost ground. Mitsubishi UFJ Financial Group shed 1.4 per cent, Sumitomo Mitsui Financial Group fell 1.2 per cent and Mizuho Financial Group declined 1.1 per cent.

Bucking the weakness, Kobe Steel jumped 5.8 per cent after it reinstated its annual profit forecast.

Published on February 02, 2018
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