Topix sinks to near 4-month low as Apple warning hurts tech shares

TOKYO, Feb 18 (Reuters) - Japanese shares fell on Tuesday,
with the broad Topix index finishing at its weakest in nearly
four months, as investors sold tech firms after Apple Inc
AAPL.O warned it will likely miss quarterly revenue targets
due to the coronavirus outbreak.
The benchmark Nikkei average .N225 fell 1.4% to a two-week
low of 23,193.80, while the Topix index .TOPX dropped 1.3% to
1,665.71, its lowest close since late October.
All but one of the 33 sector sub-indexes on the Tokyo Stock
Exchange were trading lower, with electric machinery .IELEC.T ,
metal products .IMETL.T and machinery .IMCHN.T , becoming the
worst three performers.
Apple told investors late on Monday that its manufacturing
facilities in China that produce iPhone and other electronics
have begun to re-open, but are ramping up slower than expected.
Among its Japanese suppliers, electric parts maker Murata
Manufacturing Co Ltd 6981.T shed 3.4% and Taiyo Yuden Co Ltd
6976.T , which produces ceramic capacitors for iPhones, lost
5.7%, while battery maker TDK Corp 6762.T sank 4.2%.
Also hurting market sentiment was news that the Trump
administration was considering changing U.S. regulations to
allow it to block shipments of chips to Huawei Technologies
HWT.UL from companies such as Taiwan's TSMC 2330.TW , the
world's largest contract chipmaker. Tokyo-listed semiconductor equipment supplier Tokyo Electron
Ltd 8035.T tumbled 4.8%, while semiconductor test equipment
maker Advantest Corp 6857.T plummeted 5.8%.
Benchmark Nikkei's heavyweight SoftBank Group (SBG) 9984.T
declined 4.9% after Indian startup Oyo Hotels and Homes, one of
the SBG's high-profile bets, said losses widened more than
six-fold in the year ended March 2019. Nissan Motor Co 7201.T fell 1.6% as its new chief
executive officer said he would accept being fired if he fails
to turn around the troubled automaker at an extraordinary
shareholders' meeting on Tuesday. Elsewhere, Asics Corp 7936.T , one of the sponsors of Tokyo
Marathon, slid 3.1% after organisers of the March 1 race said
the 38,000 general participants who signed up for the event will
not be allowed to compete, citing coronavirus fears.
In China, the number of new virus cases dropped to 1,886 on
Monday from 2,048 the day before. Outside of China, there are
827 cases in 26 countries and regions and five deaths, according
to a Reuters count based on official statements. Small-cap markets also lost ground, with the index of
startup-heavy Mothers market .MTHR shedding 2.4%, its biggest
one-day decline in nearly three weeks.