Japan stocks lose momentum on soft earnings, tech sector slide

  • Reuters
  • Stock Market News
Japan stocks lose momentum on soft earnings, tech sector slide
Credit: © Reuters.

* Nikkei down 0.45%, slips from 2-1/2-month high

* Lacklustre earnings, pullback by U.S. tech shares weigh

By Shinichi Saoshiro

TOKYO, July 26 (Reuters) - Japan's Nikkei lost traction on Friday on downbeat earnings both at home and on Wall Street, erasing some of the previous day's advance which had pushed the benchmark to a 2-1/2-month peak.

The Nikkei share average .N225 ended the day down 0.45% at 21,658.15. The index had risen to 21,823.07 the previous day, its highest since May 7.

Technology companies, which had given a big boost to the broader market over the past week, slid as their U.S. peers fell overnight after a strong rally.

Industrial robot maker Fanuc Corp 6954.T fell 1.6% and Tokyo Electron 8035.T lost 1.4%.

"Shares which made large contributions to the Nikkei's recent gains lost traction after the Nasdaq fell," said Masayuki Otani, chief market analyst at Securities Japan Inc.

Omron Corp 6645.T was down 7.5% after the maker of digital medical equipment reported that its June quarter consolidated operating profit declined 41.2% to 10 billion yen ($92 million), with business hit by the U.S.-China trade conflict. Motor Co 7201.T shed 3.2% after the automaker unveiled its biggest restructuring plan in a decade in the wake of a collapse in its quarterly profit. Seifun Group 2002.T slumped 10.7% as the food company reported that its June quarter net profit fell 27.2% to 4.43 billion yen with its milling operations in the United States facing increasing competition. broader Topix .TOPX shed 0.4% to 1,571.52.

Of Tokyo's 33 sub-indexes, 23 were in negative territory, led by the non-ferrous metals sector .INFRO.T .

All of Wall Street's three main indexes fell from record highs on Thursday following a flurry of downbeat quarterly results from Ford Motor (NYSE: F ) and other companies and after European Central Bank chief Mario Draghi's comments disappointed investors hoping for a more dovish stance on monetary policy. .N

($1 = 108.6300 yen)

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