Tokyo stocks fell sharply by midday on Monday, with the Nikkei average hovering just above the key 13,000 mark as optical fibre makers such as Furukawa Electric Co Ltd led broad-based high-tech declin…
Tokyo stocks fell sharply by midday on Monday, with the Nikkei average hovering just above the key 13,000 mark as optical fibre makers such as Furukawa Electric Co Ltd led broad-based high-tech declines. Optical-fibre manufacturers followed losses in their overseas counterparts, which were prompted by a profit warning by industry leader Nortel Networks Corp . Shares in Furukawa Electric, Japan“s top optical-fibre maker, fell 6.28% to JPY 1,790, a level last seen in June 2000, extending a 10.75% tumble last Friday. Nortel“s profit warning, which came after the close of regular U.S. trade on Thursday, already battered its Japanese peers in Friday“s Tokyo trade. Nortel“s woes continued to hit Furukawa“s rivals as well. Sumitomo Electric Industries Ltd fell 5.84% to JPY 1,450, while Nippon Sheet Glass Co Ltd slid 4.63% to JPY 1,174, both extending slides on Friday. “After we have downward earnings revisions from computer makers and chip firms, optical fibre makers with WDM technology were the market“s shining hopes with strong growth potential,” said Tsuyoshi Segawa, general manager in the equity derivatives division at Sakura Securities.