TOKYO, Oct 25 (Reuters) - Japanese stocks dropped on Monday
on disappointing earnings, with semiconductor-related shares
among the hardest hit, taking their cue from falls in U.S. tech
firms on poor earnings and concerns about the Federal Reserve's
The Nikkei 225 Index fell 204 points or 0.71% to
28,600.41, at one point slipping below 28,500 to a 10-day low.
The broader Topix was down 0.34 % at 1,995.42.
Semi-conductor stocks lost 0.94%, with Tokyo
Electron down 1.2% and Screen Holdings falling
2% after U.S. Nasdaq shares fell on Friday on
disappointing quarterly reports from Snap and Intel
The stocks that gained the most among the top 30 core Topix
names included Recruit Holdings Co Ltd, while
underperformers included SoftBank Group Corp, which was
Japan's ruling coalition's defeat in Sunday's by-election
was a surprise and discouraged market players from buying ahead
of this week's general election, Koichi Kurose, chief strategist
at Resona Asset Management, said.
The national election https://www.reuters.com/world/asia-pacific/main-parties-contesting-japans-lower-house-poll-2021-10-07
on Oct. 31 is key to whether new Prime Minister Fumio Kishida
is able to go ahead with big spending plans for the economy,
which is showing some signs of recovery.
The ruling Liberal Democratic Party (LDP) and its junior
coalition partner currently have a near two-thirds majority of
the 465 seats in the house. Kishida is hoping they retain a
majority, despite an opposition candidate winning one of two
upper house by-elections at the weekend.
Richly-valued U.S. tech shares had also come under pressure
after Federal Reserve Chair Jerome Powell discussed stimulus
Some Japanese corporate earnings on Friday also struck a
downbeat note and Canon Electronics was flat after
nine-month earnings fell well short of the full 2021 targets.
Ube Industries dropped 3.4% after the chemical firm
trimmed its annual net profit outlook even as it boosted its
Stanley Electric ended flat after the maker of
automobile lighting equipment maker lowered its earnings outlook
for the half year that ended in September, citing a global
plunge in car production and rising costs.
But Tokyo Steel jumped almost 16% after the
steelmaker bumped up its annual profit outlook and boosted
Chugai Pharmaceutical rose 10.4% after the
drugmaker posted upbeat earnings due to its cocktail treatment
(Reporting by Hideyuki Sano; Additional reporting by Tokyo
Markets team and Vidya Ranganathan; Editing by Alexander Smith)