Nikkei on track to fall for third day; Kawasaki Heavy sinks

  • Reuters
  • Stock Market News
Nikkei on track to fall for third day; Kawasaki Heavy sinks
Credit: © Reuters.

* Kawasaki Heavy plummets over 9 pct to 23-month trough

* Nikkei has fallen 8.1 pct from this month's 27-year peak

* 27 of Topix's 33-subsectors trade in the red

By Daniel Leussink

TOKYO, Oct 22 (Reuters) - Japan's Nikkei ended the morning session lower on Monday, tracking global losses as concerns about trade, Saudi Arabia and the euro zone bruised market sentiment and as domestic investors remained cautious ahead of key earnings this week.

The Nikkei share average .n225 dipped 0.31 percent to 22,462.54, trading about 250 points above a six-week low of 22,212.57 hit during the previous session.

Japan's benchmark index has given up around 8.1 percent since its 27-year high hit on Oct. 2, as worries over Saudi Arabia, Italy's free-spending budget and international trade disputes weighed on sentiment.

On Monday, Asian share markets fell anew as investors braced for the peak of the U.S. earnings season while geopolitics stayed front and centre. MKTS/GLOB

Investors awaited corporate earnings season in Japan to get into full swing later this week.

Toru Ibayashi, executive director of Wealth Management at UBS Securities Japan, said he expected corporate earnings to show slower growth in net profit for Topix as a whole, especially the Topix 500.

"To be honest, I think earnings will peak out," said Ibayashi. "I think it will be a bit tough, since markets haven't fully priced that in."

On Monday, shares of Kawasaki Heavy Industries Ltd 7012.T plummeted 9.9 percent to a 23-month low after the company slashed its forecasts for the current fiscal year, hurt by losses related to its railcar business and to Rolls Royce (LON: RR )'s Trent 1000 engine problems.

The heavy industrial manufacturer cut its operating profit forecast for the fiscal year ending March 2019 to 66 billion yen ($587 million) from 75 billion yen, while leaving its sales forecast intact at 1.65 trillion yen.

Shares of factory automation equipment maker Keyence 6861.T fell 0.8 percent, Nabtesco Corp 6268.T lost 0.7 percent and Fanuc Corp 6954.T edged down 0.2 percent.

Index-heavyweights such as SoftBank Corp 9984.T and Nintendo 7974.T declined 2.1 percent and 0.8 percent, respectively.

The broader Topix .TOPX declined 0.49 percent to 1,684.49, with 27 of the 33 subsectors trading in the red. ($1 = 112.5100 yen) (Editing by Sam Holmes)

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