TOKYO, Nov 18 (Reuters) - Japan's Nikkei share average
fell on Monday as technology shares tracked U.S peers' losses at
the end of last week, while drugmaker shares declined after a
noted vaccine sceptic was appointed to head the U.S. Department
of Health.
Automaker shares came under pressure from an overall
stronger yen, although the currency pulled back slightly from
early highs after Bank of Japan Governor Kazuo Ueda refrained
from giving strong hints about the timing of interest rate hikes
in a speech to business leaders. Ueda will also hold a news
conference at 0445 GMT.
The Nikkei entered the midday recess down 0.78% at
38,343.39.
It had earlier tumbled as much as 1.27%, but got some
respite after the yen dropped back to the weaker side of 155 per
dollar from as strong as 153.84 earlier in the
session. It was changing hands at 154.60 as of 0233 GMT.
A strong yen reduces the value of overseas revenue for
Japan's heavyweight exporters, and also makes Japanese stocks
more expensive for foreign investors.
The broader Topix lost 0.47%.
On Friday, all three of the main Wall Street indexes
declined, and the Philadelphia SE Semiconductor Index
slumped 3.4%.
The initial euphoria over a Donald Trump election win
ushering in easier regulation and bigger fiscal spending shifted
last week to worries over the potential for higher inflation
under his policies that could slow Federal Reserve rate cuts.
His cabinet picks have also caused some concerns, including
the appointment of Robert F Kennedy Jr, who has spread
misinformation on vaccines, to head the Department of Health and
Human Services.
Chugai Pharmaceutical ( CHGCF ) was the Nikkei's biggest
loser, sliding 8.56%. Drugmakers as a group led
decliners among the Tokyo Stock Exchange's 33 industry groups.
"Whether the Trump trade is over or just on pause is not
possible to discern at the moment," said Kazuo Kamitani, an
equities strategist at Nomura Securities.
"My personal feeling is that the market will be turbulent
all of this month."
Among tech names, Tokyo Electron ( TOELF ) dropped 2.26% and
startup investor SoftBank Group fell 2.31%.
Nvidia supplier Advantest ( ADTTF ) was volatile, dropping as
much as 3.58% before bouncing as much as 1.38% and then entering
the midday recess close to flat. Nvidia's earnings report on
Wednesday will be one of the most closely watched market events
of the week.
Toyota Motor ( TM ) and Nissan Motor ( NSANF ) each fell
about 1%.