Markets

Nikkei edges lower as tech sector sell-off weighs

TOKYO: Japan's Nikkei share average edged lower on Friday morning as worries about slower smartphone demand hit technology shares, while financial stocks rallied thanks to higher US yields.

The Nikkei gave up 0.1 per cent to 22,162.24. The index rose 1.8 per cent for the week, its fourth straight week of gains.

Semiconductor equipment companies and electronic component makers underperformed after Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, revised its full-year revenue target to the low end of its previous forecast due to softer demand for smartphones.

Tokyo Electron tumbled 2.1 per cent, Advantest Corp declined 2.2 per cent, while Murata Manufacturing shed 2.0 per cent, TDK Corp fell 1.4 per cent and Alps Electric dropped 1.8 per cent.

Rising US yields, however, benefited financials which are exposed to high-yielding products such as foreign bonds.

Insurer Dai-ichi Life surged 2.0 per cent and Sumitomo Mitsui Financial Group added 0.7 per cent.

The sea transport sector rose 2.5 per cent and was the best sectoral performer after freight charges jumped overnight.

Mitsui O.S.K. Lines soared 4.1 per cent.

The broader Topix gained 0.1 per cent to 1,751.13.

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