TOKYO, Feb 8 (Reuters) – Japan’s Nikkei share average sank on Wednesday amid heavy selling of big tech names including Nintendo and SoftBank Group following disappointing financial results, erasing any feel-good factor from a rally on Wall Street overnight.
Startup investor SoftBank Group tumbled 6.3% after slumping to a quarterly loss, while video-game maker Nintendo plunged 7.5% after trimming its profit forecast.
Electronics maker Sharp Corp plummeted 10.4% to be the Nikkei’s biggest decliner following its own earnings miss.
The Nikkei lost 0.6% to 27,531.98 as of 0200 GMT, reversing a small advance at the open after strong gains for all of the big three U.S. stock indexes. That erased earnings-fueled gains from the start of the week, taking it back to the 27,500 level it has fluctuated around for most of the past two weeks.
SoftBank and Nintendo contributed about 103 points to the Nikkei’s 155-point retreat. Uniqlo store operator Fast Retailing shaved another 36 points from the benchmark index with its 1.5% decline, falling from the seven-week high touched in the previous session following a steep three-week rally.
Meanwhile, the broader Topix slipped 0.1% to 1,982.02, after earlier rising to 1,991.49 for the first time since Dec. 1.
“The topside had gotten heavy” for the Nikkei after straying above 27,500, Nomura strategist Maki Sawada said on a call with reporters.
“At the same time, the bottom is firm, so it’s hard to think that there would be a big decline from here.”
Winners and losers were fairly evenly split on the Nikkei, with 115 of its 225 components rising versus 104 that fell, with six flat.
Consumer cyclicals was the worst performing sector, sliding 0.9%, followed by a 0.5% decline for tech.
Energy though was firmly higher, jumping 1.5% amid a surge in crude oil prices.
Financial results also produced some standout winners. Electrical equipment manufacturer GS Yuasa was the Nikkei’s best performer, up 6.6%, followed by Mitsubishi Chemical Group and drugmaker Kyowa Kirin, which rallied 6.0% and 5.9%, respectively. (Editing by Uttaresh.V)