Tokyo: Nikkei slid 1.03 percent on Friday as TDK Corp and other technology firms were hit by concern the US Federal Reserve will continue to increase interest rates even as the economy slows, denting demand for Japanese goods.
Shares of Sanyo Electric Co Ltd were down after mobile phone giant Nokia said on Thursday it had ended talks to form a joint venture with the Japanese electronics maker.
"The big worry right now is monetary policy," said Toshihiko Matsuno, an assistant general manager of investment research at SMBC Friend Securities, referring to the possibility of higher US interest rates.
"Investors here are really paying attention to US interest rates, as that moves Wall Street. So if the US starts to worry, so do we," he added.
The Nikkei was down 155.44 points at 14,980.25 as of 0001 GMT. The TOPIX index was down 1.22 percent at 1,530.20.
Electronic components maker TDK, which makes more than 70 percent of its sales abroad, fell 1.5 percent to 8,620 yen.
Toyota Motor Corp., the world's most profitable automaker, dropped 1.2 percent to 5,800 yen.
Sanyo Electric fell 3.2 percent to 243 yen after Nokia, the world's largest mobile phone maker, said, it had ended talks to form a joint venture with Sanyo to produce phones using the CDMA standard.
Shares of Sony Corp fell over one percent to 4,890 yen, as investors shrugged off bullish comments from the electronics firm's chief executive.
The company is on track to hit its target of doubling its operating profit margin by the next business year, Howard Stringer said on Thursday.
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