2018-11-15
Japan's Nikkei closed lower on Thursday as banks fell after disappointing earnings forecasts and losses in the US financial sector.
 
An electronic panel showing the Nikkei index in Tokyo on November 13, 2018. Photo by Toro Hanai Reuters
 
The market was negatively impacted by sell-offs in large market stocks such as Softbank and Fanook and a decline in the performance of Apple's suppliers.
 
The Nikkei fell 0.2 percent to close the benchmark at 21,803.62 points.
 
Analysts say investors are frustrated after large Japanese banks, which posted second-quarter profit in the previous session, have lifted their annual forecast.
 
The banking sector led the worst-performing sector with a 2.1 percent decline.
 
Sumitomo Mitsui Financial Group fell 3.1 percent, while Mizuho Financial Group fell 1.7 percent.
 
Sales in the US financial sector rose on Wednesday from weak market sentiment.
 
US financial stocks have been hit by fears of tight regulation of the banking sector as the Democratic Party controls the US House of Representatives.
 
Softbank's heavyweight group fell 2.7 percent and Fanook fell 1.9 percent, down 41 points from Nikkei.
 
Apple's suppliers were severely hurt after the iPhone maker's share price plunged in the previous session, with Taiyo Yudun down 4.8 percent and TDK Corp. falling 3.1 percent.
 
In contrast to market weakness, Amada Holdings jumped 11 percent after the metalmaker raised its operating profit forecast for the year to March to 43 billion yen from 40.5 billion yen.
 
The company said it would buy back 2.73 percent of existing shares.
 
The broader TOPIX index <.TOPX> was down 0.1 percent at 1,638.97.