TOKYO, Jan 28 (Reuters) - Japanese shares suffered their
biggest drop in six months on Thursday, tracking Wall Street,
weighed by technology companies which have benefited from a
recent rally in stocks.
The Nikkei share average .N225 fell 1.53% to 28,197.42,
the biggest decline since July 31, while the broader Topix
.TOPX slid 1.14% to 1,838.85.
Topix's electric appliances index has jumped 6.34% this
year, while the Topix has gained 1.89%.
"Today's market is tracking the U.S. stock markets. The rise
in the stock volatility index is also prompting investors to
sell down," said Yoshihiro Takeshige, general manager at
investment management department of Asahi Life Asset Management.
Federal Reserve left interest rates unchanged and kept its
bond-buying program intact, as widely expected, noting that the
economic recovery has slowed in recent months. That along with a slump in shares of planemaker Boeing Co
BA.N led U.S. stocks to post their biggest one-day percentage
drop in three months on Wednesday. .N
Rising coronavirus cases and uneven distribution of vaccine
rollouts increased investor anxiety, sending the CBOE Market
Volatility index .VIX to its highest since Oct. 30 overnight.
Local chip-related shares fell, with Renesas Electronics
6723.T losing 5.85%, Advantest 6857.T falling 4.3% and Sumco
3436.T declining 4.47%.
Fanuc 6954.T fell 1.01% even after the factory automation
machinery maker raised its operating profit forecast for a
second time to 105.8 billion yen ($1.01 billion), a 19.8%
increase from a year earlier.
Nikkei's heavy weights also declined, with SoftBank Group
9984.T sinking 3.6%, Tokyo Electron 8035.T dropping 4.62%
and Fast Retailing 9983.T falling 0.24%.
Shares in transport and retailers, which have been sold
heavily during the pandemic, advanced. ANA Holdings 9202.T ,
Japan Airlines 9201.T and East Japan Railway 9020.T rose
between 2.71% and 4.65%.
Automakers Mitsubishi Motors 7211.T rose 6.75% and Isuzu
Motors 7202.T gained 4.73%, while department store operators
Takashimaya 8233.T and Isetan Mitsukoshi Holdings 3099.T
gained 4.85% and 5.67%, respectively.
($1 = 104.3300 yen)