TOKYO, April 12 (Reuters) - Japanese shares ended lower on
Monday, dragged down by sharp losses in Yaskawa Electric after
the industry bellwether's earnings outlook failed to meet the
market's expectations, prompting a sell-off in other tech
stocks.
Nikkei average .N225 fell 0.77% to close at 29,538.73. It
has been in a holding pattern after hitting a 30-and-a-half-year
high in mid-February, with a break of either its March 18 high
of 30,485 or March 24 low of 28,379, seen as needed for a new
trend to emerge.
The broader Topix .TOPX ended 0.25% lower at 1,954.59.
Shares of robot maker Yaskawa Electric 6506.T , a leading
indicator on Japanese manufacturers' earnings trends, lost 7.11%
after its February quarter earnings fell short of investor
expectations.
The company expects 54.5% jump in its operating profit to 42
billion yen ($383.67 million) in the current financial year,
nearly meeting analysts' forecast of 43 billion yen.
Other technology firms also fell, with Nitto Denko 6988.T ,
Shin-Etsu Chemical 4063.T and Fanuc 6954.T dropping between
3.7% and 1.76%.
"Today's investor reaction to Yaskawa stock suggested that
the market expectations for the company was very strong," said
Takatoshi Itoshima, strategist at Pictet Asset Management.
"Investors sold other tech shares because Yaskawa's result
implicated disappointing earnings for others. But if they could
confirm strong earnings of other firms, they would buy them
back."
Supermarket operator Aeon 8267.T also lost 4.08%, after
subdued quarterly earnings. More retailers will release their earnings this week while
the country's top companies will start later this month.
Toshiba 6502.T rose 6.21% after the Nikkei financial daily
said late Friday state-backed Japan Investment Corp (JIC) and
the Development Bank of Japan (DBJ) would join $20 billion
takeover bid by CVC Capital Partners. Small golf shaft maker Graphite Design 7847.T jumped
8.12%, after Hideki Matsuyama become the first Japanese man to
win a Masters victory at Augusta National.
Golf-related service firm Value Golf 3931.T gained 13.01%.
($1 = 109.4700 yen)