Tokyo's Nikkei hits 1-mth low, metals

Tokyo, Sept 12: Japan's Nikkei average turned lower and hit a one-month low by midmorning on Tuesday, led down by metal and energy-related shares such as Mitsubishi Corp. and Toho Zinc Co.

following a drop in oil and commodities prices.

Fanuc Ltd., Okuma and other machinery makers also came under pressure, adding to losses made in the previous session when the sector was hit by surprisingly weak machinery orders data for July.

''The machinery orders figure is still weighing on the market.

It has cast a shadow over Japan's economic outlook,'' said Toshihiko Matsuno, assistant general manager at the investment and research department of SMBC Friend Securities.

Gains in shippers and airlines such as Kawasaki Kisen Kaisha Ltd. and All Nippon Airways Co. (ANA) helped support the market as they stand to benefit from lower fuel prices, with crude oil futures hitting a five-month low on Monday.

Following a small rise at the open, the Nikkei was down 0.61 percent or 95.61 points at 15,698.77 as of 0107 GMT, extending a 1.78 percent fall in the previous session. Earlier the Nikkei hit a one-month intraday low of 15,675.37.

The broader TOPIX index lost 0.51 percent to 1,588.29.

Metal smelters and trading firms were sold due to a drop in metals and oil prices.

Sumitomo Metal Mining Co. Ltd., Japan's biggest gold producer, fell 2.51 percent to 1,631 yen, while top trading house Mitsubishi gave up 2.86 percent to 2,205 yen and zinc and lead smelter Toho Zinc slipped 5.82 percent to 938 yen.

Industrial robot maker Fanuc fell 0.54 percent to 9,210 yen and Okuma dropped 2.61 percent to 1,083 yen. Okuma, a machine tool maker, lost more than 4 percent on Monday on data showing machinery orders -- a key gauge of capital spending, fell 16.7 percent in July.

Among winners, Kawasaki Kisen rose 1.74 percent to 758 yen and ANA gained 1.48 percent to 480 yen.

Reuters