TOKYO: The Nikkei stock average fell 1 per cent on Monday, as euro zone debt worries weighed on markets before a crucial parliamentary vote due this week and after a sharp fall in overseas banking shares.
Financial shares dragged the Nikkei below support at its 13-week moving average in relatively high volume after a steep fall in shares of two Italian banks on fears about their capital positions reminded investors about contagion risks last Friday.
But carmakers limited losses for the Nikkei, with investors citing receding supply chain jitters.
Nissan Motors edged up for a fifth straight day of gains. Despite disruption to production from the March 11 earthquake, Nissan said it would boost sales by 9.9 per cent to 4.6 million vehicles this year. Honda Motors added 0.8 per cent to 3,025 yen.
"Worries over the Greek vote are adding to the market's anxiety after Italian banking shares tumbled on Friday. That's why market players are moving into safer assets today," said Takashi Ohba, a senior strategist at Okasan Securities.
"But the rise in most carmakers is quite significant. I thought that the market would've priced in Nissan's strong earnings forecast by now -- but it still keeps rising, boosting confidence in car shares."
Source- Economic Times
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