REFILE-Nikkei snaps 6-day winning streak as Apple-related shares tumble

  • Reuters
  • Stock Market News
REFILE-Nikkei snaps 6-day winning streak as Apple-related shares tumble
Credit: © Reuters.

(Corrects day in first paragraph)

* Apple component makers fall after Apple's weak guidance

* Chip-making machine makers underperform after weak BB ratio

By Ayai Tomisawa

TOKYO, July 22 (Reuters) - Japanese shares snapped a six-day winning streak on Wednesday, pressured by declines on Wall Street with Apple Inc AAPL.O -related stocks stumbling after the tech giant's revenue forecast missed market expectations.

The Nikkei share average .N225 dropped 1.0 percent to 20,627.93 in midmorning trade after ending at a near four-week closing high on the previous day. In the past six days, the Nikkei had gained 5.0 percent.

U.S. stocks fell as results from IBM IBM and United Technologies UTX dampened early optimism over the earnings season. After the bell, Apple forecast fourth-quarter revenue below estimates, sending its shares down 8 percent in after-hours trading, despite reporting strong iPhone sales.

A fall in Apple shares soured sentiment in Apple-related stocks in Japan, with Murata Manufacturing Co 6981.T tumbling 6.4 percent, Foster Electric Co 6794.T falling 2.5 percent, and TDK Corp 6762.T dropping 3.0 percent.

"Since the market had been rising, such bad news can take a toll," said Hikaru Sato, a senior technical analyst at Daiwa Securities. "But the impact from Apple's weak forecast should not drag on."

Chip-related stocks were sold off after semiconductor market research company SEMI said that the book-to-bill ratio for June was 0.98, meaning $98 worth of orders were received for every $100 of product billed for the month.

Advantest Corp 6857.T dropped 2.5 percent and Tokyo Electron Ltd 8035.T shed 1.6 percent.

Bucking the weakness, Pigeon Corp 7956.T rose 1.6 percent after Daiwa Securities raised its rating to 'outperform' from 'neutral', citing ongoing strength in baby-bottle sales in its main overseas market China.

The broader Topix .TOPX dropped 1.0 percent to 1,657.99, and the JPX-Nikkei Index 400 .JPXNK400 declined 1.0 percent to 14,965.79.

(Editing by Shri Navaratnam)

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles