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