Nikkei dips as oil woes add to pandemic fears ahead of earnings

By Hideyuki Sano
TOKYO, April 21 (Reuters) - Japanese shares dropped on
Tuesday with energy-related companies taking the brunt of a
collapse in oil prices while the virus pandemic sapped risk
appetite ahead of corporate earnings.
The Nikkei share average .N225 fell 1.58% to 19,358.77,
slipping further from Friday's near six-week high of 19,922. The
broader Topix .TOPX lost 0.89% to 1,419.66.
On the whole, trade was slow with investors looking to the
Japanese earnings season starting later this week.
Companies with exposure to the oil market were in focus
after oil prices grabbed headlines with the front-month May U.S
crude futures contract CLc1 turning negative overnight.
Energy plant engineering firm JGC 1963.T dropped 4.1%
while Chiyoda Corp 6366.T fell 3.1%.
Trading houses, for which resource operations are a core
part of business, were another victim.
Mitsubishi Corp 8058.T lost 2.0% while Mitsui Co 8031.T
shed 2.2%. Itochu Corp 8001.T fell 1.6%.
Cyclical shares such as semi-conductor related companies
were also under pressure as investors continued to fret over the
impact from the novel coronavirus pandemic.
Silicon wafer manufacturer Sumco Corp 3436.T fell 3.9%
while electronic parts maker TDK Corp 6762.T shed 3.3%.
Lower oil prices offered limited comfort for companies that
would normally benefit from them, such as airlines, given the
sheer scale of demand destruction.
Japan Airlines 9201.T fell 1.3% but rival ANA Holdings
9202.T managed to eke out gains of 0.3% after cutting its
profit estimates for the year that ended on March 31 to 27
billion yen ($250.9 million) from the previous estimate of 94
billion yen. Its earnings announcement is scheduled on April 28.
Takara Bio 4974.T rose 11.8% after a media report that it
would build a mass production system for the coronavirus vaccine
it is developing.
Nintendo 7974.T also gained 0.6% following a media report
the game company was considering increasing the production of
its popular "Switch" game console, demand for which has risen
after lockdowns in many countries.
Defensive shares were still in favour with food company
Meiji Holdings 2269.T rising 1.8% and toiletry goods maker Kao
Corp 4452.T gaining 1.1%.
($1 = 107.6000 yen)

(Editing by Jacqueline Wong)