Nikkei drops as chip stocks, tool makers sold, Pioneer volatile
(Corrects strategist's name in fourth paragraph)
* Chip-related stocks tumbled after Sox index fall overnight
* Pioneer volatile after funding news
By Ayai Tomisawa
TOKYO, Sept 12 (Reuters) - Japan's Nikkei fell on Wednesday
as chip-related stocks tracked weakness in their U.S.
counterparts overnight and as machine tool makers weakened after
downbeat industry data.
The Nikkei share average was down 0.4 percent at
22,571.76 points by the midday break, after rising 1.3 percent
to a one-week high on Tuesday.
Worries about escalation in the Sino-U.S. trade war and the
outcome of U.S.-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
A source told Reuters on Wednesday that Japanese Economy
Minister Toshimitsu Motegi and U.S. 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 percent
Semiconductor device maker Rohm Co dived 9.9
percent to hit a one-year low, while high-purity silicon maker
Sumco Corp stumbled 7.8 percent and Advantest Corp
dropped 3.2 percent.
Machine tool makers stumbled after the Japan Machine Tool
Builders' Association said machine tool orders for overseas
markets in August dropped 4.4 percent on the year.
Tsugami Corp dived 6.6 percent, Okuma
plunged 5.2 percent, DMG Mori dropped 3.0 percent and
Makino Milling Machine shed 2.2 percent.
Struggling consumer electronics maker Pioneer Corp
was extremely volatile, soaring as much as 6.2 percent before
ending the morning session down 9.3 percent.
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 percent to 1,686.64.
(Editing by Kim Coghill)
First Published: 2018-09-12 04:59:39
Updated 2018-09-12 07:30:11
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