Nikkei down 1.17 percent, blue-chips hit

Tokyo, Nov 28: The Nikkei average dropped 1.17 percent on Tuesday as investors sold Honda Motor Co. and other blue-chip stocks following a sharp tumble on Wall Street amid concerns over the strength of the year-end shopping season.

The bearish market sentiment encouraged investors to take profits on drugmaker Eisai Co. and system integrator NTT Data Corp., which had helped the Nikkei rally nearly 1 percent in the previous session.

As of 0122 GMT, the Nikkei was down 185.41 points at 15,699.97 while the broader capital-weighted TOPIX index gave up 1.08 percent to 1,536.16.

But the Nikkei's fall was not as steep as the 2.2 percent slide in the Nasdaq Composite index Zenshiro Mizuno, senior managing director of Marusan Securities' equity trading division, said a rebound in some small and mid-cap stocks was supporting market sentiment and limiting falls in the broader market.

''Shares in start-ups and small and mid-sized companies, which have been sold almost unfairly, are regaining strength. That's why the Nikkei is not dropping as much,'' Mizuno said, predicting the market may strengthen as the day wears on.

Among stocks hit, casual wear retailer Fast Retailing Co.

Ltd. fell 2.91 percent to 9,690 yen, machinery maker Fanuc Ltd.

declined 2.0 percent to 10,310 yen and Honda fell 2.23 percent to 3,950 yen.

Softbank Corp., often a weathervane for sentiment among retail investors and small and mid-cap shares, rose 1.94 percent to 2,360 yen.

The Tokyo exchange's Mothers index of start-up companies was up 0.82 percent.

Reuters