Japan's Nikkei falls for a 3rd day as tech sector weighs, energy shares rise
People are reflected on a stock quotation board displaying the Nikkei share average outside a brokerage in Tokyo March 28, 2011. REUTERS/Toru Hanai (JAPAN - Tags: DISASTER BUSINESS)
TOKYO, Oct 26 : Japan's Nikkei share gauge lost ground for a third straight session on Monday as chip-related shares continued their decline, while energy-linked shares gained on higher oil prices.
The benchmark Nikkei 225 slid 0.80 per cent to close at 62,189.65, its lowest closing level since July 30. The broader Topix edged up 0.18 per cent to 3,972.98.
US share gauges ended lower on Friday, but the S&P 500 energy sector rose 2.5 per cent to a record. Oil prices slid from a six-month high on Monday after reports that Qatari mediators visited Tehran to seek de-escalation in coordination with the United States, following intensified Houthi attacks on Saudi Arabia that had stoked supply concerns.
"The Nikkei Stock Average is showing signs of short-term technical undervaluation," Monex Securities senior analyst Satoshi Saito said in a note. "Stocks may see phases of short-term rebound, but with several concerns in the background, the recovery may remain sluggish for now."
The market was also impacted by the latest in a wave of cyberattacks that have disrupted internet services and leaked customer information.
GMO Internet Group said customers would be compensated for losses stemming from unauthorised access following an attack on its foreign exchange trading service. Its shares plunged 15.65 per cent, the sharpest decline since March 2011.
Breadth was largely positive on the Nikkei, but the heavy weighting of tech shares dragged it lower. The gauge had 149 gainers and just 73 decliners.
The largest losers were online retailer Mercari, down 6.21 per cent, followed by Screen Holdings, 4.34 per cent lower, and Kokusai Electric, which lost 4.29 per cent.
The biggest winners were energy explorer Inpex, up 4.90 per cent, followed by internet security firm Trend Micro, 4.20 per cent higher, and Mitsubishi Corp, which gained 4.14 per cent.
