TOKYO: Tokyo shares closed down 0.45 percent on Monday, weighed by the strong yen and concern over China's economic slowdown as well as an ongoing territorial row with Japan.
The Nikkei 225 index at the Tokyo Stock Exchange ended down 40.71 points at 9,069.29 while the Topix index of all first-section issues lost 0.36 percent, or 2.70 points, to 753.68.
Troubled chipmaker Renesas Electronics rocketed 31.25 percent to 336 yen with the daily limit gain of 80 yen after remaining bid-only on weekend news of a possible rescue by a consortium of firms including Toyota and Panasonic.
"It's normal for the yen to rise around this time of the year" due to currency repatriation moves ahead of end-September quarterly book closings, noted CLSA equity strategist Nicholas Smith.
"It appears that after a week of putting risk back on, investors are taking some of that risk off the table," he told Dow Jones Newswires.
The dollar was changing hands at 78.02 yen in Tokyo afternoon trade, down from 78.18 yen on Friday.
The broader market was dragged down by the strong yen and jitters over Japanese companies' businesses linked to China owing to the country's weakening economy and high tennsions over a disputed group of islands.
Those worries were heightened when China postponed a ceremony marking the 40th anniversary of the establishment of diplomatic ties with Japan, while a group of Japanese business leaders that has met top Chinese politicians regularly over 37 years will cancel this year's trip.
Shares of shippers and steelmakers were down sharply, with Mitsui OSK Lines falling 4.30 percent to 200 yen and steelmaker JFE Holdings down 4.88 percent at 1,070 yen.
The group of shares was seen reacting to rekindled fears over a China economic slowdown, said Kenichi Hirano, market analyst at Tachibana Securities.
"There are no data per se in particular to trigger such selling, but the concerns over China are having an effect almost across the board," he added.
Major exporters also fell. Canon fell 3.86 percent to 2,689 yen and Honda Motor dropped 1.80 percent to 2,553 yen.
Toyota was down 1.56 yen at 3,150 yen despite an announcement of a plan to roll out a number of new electric-gas engine powered models over the next few years and predicting robust hybrid sales. (AFP)
