INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei fell on Wednesday as chip-related stocks tracked weakness in their US counterparts overnight and as machine tool
makers weakened after downbeat industry data.
In afternoon trade, agriculture equipment maker Kubota Corp tumbled as much as 4.9 per cent
after ending 1.4 per cent lower after the company said it had falsified data for metal rolling components
The company said that the products were shipped to 85 steelmakers in Japan and abroad, but it added that there had been no impact on the
quality of the components.
A total of 10.46 million of Kubota shares changed hands, about 370.1 per cent of their 30-day moving average of
2.83 million shares a day.
The Nikkei share average ended 0.3 per cent lower at 22,604.61, after rising 1.3 per cent to a one-week high on
Tuesday.
Worries about escalation in the Sino-US trade war and the outcome of US-Japan trade talks also added to the gloomy mood.
"There is
so much uncertainty over global trade issues
We want to first know how Japan's key auto industry will be affected," said Kazuhito Suzuki, a strategist at Shinkin Asset Management.
A
source told Reuters on Wednesday that Japanese Economy Minister Toshimitsu Motegi and US Trade Representative Robert Lighthizer will likely
hold a second round of trade talks on Sept
21 in the United States.
Their meeting is planned to precede an expected summit between Prime Minister Shinzo Abe and President Donald Trump
on the sidelines of a U.N
General Assembly General Debate starting Sept
25, the source said.
Chip-related stocks were under pressure after the Philadelphia SE Semiconductor Index dropped 1 per cent
overnight.
Semiconductor device maker Rohm Co dived 10.5 per cent to hit a one-year low, while high-purity silicon maker Sumco Corp stumbled
7.8 per cent and Advantest Corp dropped 3.7 per cent.
Machine tool makers stumbled after the Japan Machine Tool Builders' Association said
orders for overseas markets in August dropped 4.4 per cent on the year.
Tsugami Corp dived 6.3 per cent, Okuma Corp plunged 4.9 per cent,
DMG Mori dropped 2.2 per cent and Makino Milling Machine shed 2.0 per cent.
Struggling consumer electronics maker Pioneer Corp was extremely
volatile, soaring as much as 6.2 per cent before ending the day down 9.3 per cent.
Pioneer said it had secured up to 60 billion yen ($540
million) in funding from Hong Kong-based fund manager Baring Private Equity Asia (BPEA).
"Pioneer's life was extended through the funding
for now, but it's unclear how the company's is trying to survive and which profitable core business it has," said a fund manager at a
Japanese asset management firm.
The broader Topix shed 0.7 per cent to 1,686.64
