Nikkei sags as Wall Street slips, Ukraine tensions drive up yen

Sun Apr 27, 2014 10:40pm EDT

By Shinichi Saoshiro
    TOKYO, April 28 (Reuters) - Japanese shares fell on Monday,
weighed down by a drop on Wall Street and as tensions in the
Ukraine drove up the yen.
    The Nikkei share average fell 1.1 percent to
14,276.42 in morning trade. The broader Topix index shed
1 percent to 1,158.03.
    The dollar was on course to mark its fourth straight day of
losses against the safe-haven yen, as tensions mount over the
crisis in the Ukraine.
    The greenback traded at 102.14 yen, in close reach of
a one-week trough of 101.96 hit on Friday.
    "Weaker U.S. equities and the stronger yen is being received
negatively by the domestic stock market. Potential buyers are
also sidelined ahead of tomorrow's public holiday," said Yutaka
Miura, senior technical analyst at Mizuho Securities in Tokyo.
    Financial markets in Tokyo will be closed on Tuesday for a
public holiday.
    "The ongoing crisis in Ukraine mainly impacts Japanese
stocks by affecting the performances of U.S. and European
equities, but it is not a direct factor," Miura said.
    With the earnings season in swing, lacklustre corporate
forecasts also dampened sentiment.
    Honda Motor Co fell 4.6 percent after briefly
touching a 15-month low, following its net profit forecast for
the year through March 2015 of 3.6 percent came in below market
expectations for growth of 22 percent. 
    Japan Display Inc lost as much as 13.9 percent,
their lowest since its initial public offering just over a month
ago, after the world's largest maker of smartphone screens
slashed its full-year operating profit forecast by nearly 11
percent. 
    Kinki Sharyo Co shed 8.38 percent after the rolling
stock manufacturer cut its sales forecast for the year ended
March 2014 and said it would not pay any dividends to its
shareholders against its initial forecast for a payment of five
yen per share.
    Fast Retailing, the Nikkei heavyweight and casual
clothing giant, dropped 2.6 percent.
    Mobile phone services operator NTT DoComo Inc 
bucked the trend and gained 4.2 percent after it announced on
Friday that it would buy back 7.72 percent of its shares
outstanding.
    The new JPX-Nikkei Index 400 lost 0.93 percent
to 10,545.26.
    Wall Street dropped on Friday, pulled lower by a sell-off in
consumer discretionary stocks as bellwether names Amazon.com and
Ford Motor fell in the wake of their quarterly earnings. The Dow
lost 0.9 percent while the Nasdaq lost 1.75
percent. 

 (Editing by Jacqueline Wong)
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