April 20, 2018 / 6:40 AM / a month ago

Nikkei edges lower as tech sector sell-off weighs

TOKYO, April 20 (Reuters) - Japan’s Nikkei share average edged lower on Friday morning as worries about slower smartphone demand hit technology shares, while financial stocks rallied thanks to higher U.S. yields.

The Nikkei gave up 0.1 percent to 22,162.24. The index rose 1.8 percent for the week, its fourth straight week of gains.

Semiconductor equipment companies and electronic component makers underperformed after Taiwan Semiconductor Manufacturing Co Ltd, the world’s largest contract chipmaker, revised its full-year revenue target to the low end of its previous forecast due to softer demand for smartphones.

Tokyo Electron tumbled 2.1 percent, Advantest Corp declined 2.2 percent, while Murata Manufacturing shed 2.0 percent, TDK Corp fell 1.4 percent and Alps Electric dropped 1.8 percent.

Rising U.S. yields, however, benefited financials which are exposed to high-yielding products such as foreign bonds.

Insurer Dai-ichi Life surged 2.0 percent and Sumitomo Mitsui Financial Group added 0.7 percent.

The sea transport sector rose 2.5 percent and was the best sectoral performer after freight charges jumped overnight.

Mitsui O.S.K. Lines soared 4.1 percent.

The broader Topix gained 0.1 percent to 1,751.13. (Reporting by Ayai Tomisawa Editing by Shri Navaratnam)

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