INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei share average dropped on Monday as sellers targeted large caps including Fast Retailing and SoftBank as well as
defensive stocks, while the mining sector outperformed after oil prices jumped on Friday.
Sharp Corp stumbled 5.1 per cent after the company
said it will issue 78.4 million shares via a public offering.
The Nikkei fell 0.8 per cent to 22,338.15, extending the weekly drop of 1.6
per cent in the past week
The dollar dropped 0.5 per cent to 109.46 yen in Asian trade.
"The stronger yen is hurting sentiment, but what investors are selling
primarily are the defensive names today, so the impact to exporter shares seems to be limited for now," said Hikaru Sato, a senior technical
analyst at Daiwa Securities.
All the same, investors remain cautious due to the potential fallout Japan's export-reliant economy might
suffer from global trade tensions, he said.
The SP500 mini futures fell more than 0.5per cent in Asian trade after the Wall Street Journal
President Donald Trump plans to bar many Chinese companies from investing in US
technology firms.
Fast Retailing shed 1.0 per cent and SoftBank declined 2.4 per cent , contributing a combined 40.6 negative points to the
Nikkei.
Defensive railroad stocks languished, with East Japan Railway dropping 2.9 per cent and West Japan Railway shedding 1.4 per cent
.
Mining stocks outperformed, with Inpex Corp surging 1.8 per cent after oil prices on Friday jumped as the Organization of the Petroleum
Exporting Countries agreed on a modest increase in oil production from next month.
In Asian trade, oil prices pulled back after factoring in
the slight output rise.
The broader Topix dropped 1.0 per cent to 1,728.27.
