Stocks

Nikkei falls to 2-week low

Reuters | Updated on November 13, 2018 Published on November 13, 2018

Weighing on the tech-heavy Nasdaq, Apple shares fell 5.0 per cent on Monday after several suppliers to the company, including Lumentum Holdings Inc, cut their forecasts.   -  Reuters

Tech shares slip as Apple's slide hurts US counterparts

Japan's Nikkei share average tracked losses on Wall Street and fell to a two-week low on Tuesday, with technology stocks slipping after US counterparts were hit by Apple Inc's slide. The Nikkei was down 3.21 per cent at 21,554.45 at the midday break after going as low as 21,484.65, its weakest since October 30.

Weighing on the tech-heavy Nasdaq, Apple shares fell 5.0 per cent on Monday after several suppliers to the company, including Lumentum Holdings Inc, cut their forecasts. In turn, Apple-linked shares in Tokyo retreated. Japan Display Inc sank more than 7 per cent, Murata Manufacturing Co lost 4.1 per cent, Minebea Mitsumi slid 4.7 per cent and TDK Corp lost 8.2 per cent.

Other technology shares also fell in the wake of the overnight US retreat, with Tokyo Electron falling 3.1 per cent, Screen Holdings shedding 5.3 per cent and Advantest Corp  losing 4.9 per cent. Sony Corp was down 4.6 per cent.

“A fair number of factors are weighing on the market currently, such as seeming weakness in some US tech giants and lingering worries about the Chinese economy,” said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.

Automakers sagged following news that the US Commerce Department submitted draft recommendations to the White House on its investigation into whether to impose tariffs of up to 25 per cent on imported cars and parts on national security grounds.

Toyota Motor Corp lost 3 per cent, Nissan Motor Co dropped 2 per cent and Honda Motor was down 3.2 per cent. Toshiba Corp bucked Monday's trend and rose 3.3 per cent after announcing that it would repurchase up to 192.6 million shares, or 30 per cent of its outstanding stock.

All of Tokyo's 33 subindexes were in the red. The broader Topix was down 2.8 per cent at 1,625.09.

Published on November 13, 2018
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