TOKYO, Aug 2 (Reuters) - Japan's Nikkei share average
tumbled 5% on Friday to hit a six-month low after Wall Street
slumped overnight on U.S. economic worries, while uncertainties
over the Japanese central bank's tightening path also weighed on
the market.
The Nikkei was down 4.7% at 36,333.21, as of 0128
GMT. Earlier in the day, it declined as much as 5% to hit its
lowest since Feb. 7.
The broader Topix was down 5.5% at 2,554.85.
U.S. stocks kicked off August sharply lower after a round of
economic data spurred concerns the economy may be slowing faster
than anticipated while the Federal Reserve maintains a
restrictive monetary policy.
"Momentum in the U.S. market turned negative overnight, with
concerns about recession rising. That weighed on Japanese
equities a lot today," said Yugo Tsuboi, chief strategist at
Daiwa Securities.
"In Japan, the market is uncertain about whether the BOJ
will raise interest rates again this year and by how much," said
Tsuboi, adding that higher rates could strengthen the yen and
that could hurt exporters.
Chip-making equipment maker Tokyo Electron ( TOELF ) tanked
12% to drag the Nikkei the most. Chip-testing equipment maker
Advantest ( ADTTF ) slipped 7%. Technology investor SoftBank
Group lost 6.8%.
All the 33 industry sub-indexes on the Tokyo Stock Exchange
fell, with financials sectors leading the losses. The brokerage
sector lost 11% and the banking sector fell
8.4%.
The Nikkei Volatility index was near 28%, its
highest since April 19.
(Reporting by Junko Fujita, additoinal reporting by Ankur
Banerjee; Editing by Subhranshu Sahu)