December 15, 2017 / 6:30 AM / a year ago

Nikkei falls hit by telecom stocks, posts 1.1 pct weekly drop

TOKYO, Dec 15 (Reuters) - Japanese stocks fell to their lowest in more than a week on Friday, with mobile firms extending a sell-off on concerns of increased competition after e-commerce group Rakuten said it aims to become the country’s fourth wireless carrier.

Taking the cue from weak U.S. stocks overnight, the Nikkei share average declined 0.6 percent to 22,553.22, the lowest closing since Dec. 7.

For the week, the Nikkei shed 1.1 percent.

The information and communication sector slumped 3.2 percent and was the worst performer on the board.

KDDI Corp tumbled 6.7 percent, NTT Docomo skidded 4.6 percent and SoftBank, which has a more diversified business portfolio, shed 2.4 percent. The sell-off was triggered after Rakuten Inc said it was weighing entry into the mobile carrier market, which would set it up to compete with the telecom giants.

On the other hand, heavyweight stocks such as clothing company Fast Retailing Co rose 1.3 percent, while chip equipment makers also gained ground, with Tokyo Electron rising 1.4 percent and Advantest gaining 0.9 percent.

The broader Topix dropped 0.8 percent to 1,793.47.

Reporting by Ayai Tomisawa; Editing by Sam Holmes

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