Nikkei falls to 1-week low, SoftBank dives on selloff in U.S. tech stocks
* SoftBank dives in wake of selloff in U.S. tech stocks * Daiichi Sankyo soars after Sun Pharma buys Indian unit Ranbaxy * U.S. jobs data positive but overshadowed by Wall Street slide By Ayai Tomisawa TOKYO, April 7 (Reuters) - Japan's Nikkei share average tumbled to a one-week low on Monday morning after a slide on Wall Street overshadowed encouraging U.S. jobs data, and index heavyweight SoftBank Corp dived in the wake of a sell-off in U.S. tech names. Traders said SoftBank shares have become very sensitive to moves in U.S. tech stocks ahead of Alibaba's IPO, which is expected to become one of the largest offerings in history. Alibaba said last month that it is planning its initial public offering in the United States. SoftBank declined 4.3 percent lower and was the most traded stock by turnover. It was a disappointing session on Wall Street on Friday as last year's big winners mostly in the tech and bio tech sectors suffered a punishing selloff, taking the gloss off a relatively strong U.S. March jobs report. "SoftBank is a 'champion stock' among Japanese tech stocks so foreign investors are unloading it from their portfolios," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. "What's happening in the U.S. market is happening in the Japanese market today." The Nikkei dropped 1.6 percent to 14,817.33 in mid-morning trade after falling as low as 14,808.81 earlier, the weakest since April 1. Some analysts said the improving U.S. economic outlook will help to eventually spur demand for Japanese products and in turn boost the market. "In the mid-to-long term, a recovery in the U.S. economy will lift demand for Japanese products. It will also lift the dollar level to the yen," said Kenji Shiomura, an analyst at Daiwa Securities. On Monday, exporters lost ground after the dollar retreated from a 2-1/2 month high of 104.13 yen to last stand at 103.25. Honda Motor Co shed 2.1 percent, Hitachi Ltd fell 2.6 percent, and Tokyo Electron Ltd sank 3.3 percent. Bucking the weakness, Daiichi Sankyo Co rose 5.1 percent to 1,844 yen, the highest since late January after saying that Sun Pharmaceutical Industries Ltd will buy its Indian unit Ranbaxy Laboratories Ltd. The broader Topix index dropped 1.4 percent to 1,199.21 while the new JPX-Nikkei Index 400 fell 1.3 percent to 10,882.68. (Editing by Shri Navaratnam)
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