Japan's Nikkei share average edged down on Tuesday morning in choppy trade, as construction stocks extended a punishing sell-off on growing concerns some of the firms may have breached antitrust regulations.

The Nikkei was flat at 22,905.40 in midmorning trade, after opening up 0.3 per cent. The construction sector slipped 1.5 per cent and was the worst performer on the board, after Tokyo prosecutors raided Japanese construction companies on suspicion of antitrust breaches related to $80 billion worth of magnetic levitation (maglev) train line projects.

Taisei Corp , one of the so-called “big four” group of Japanese construction firms involved in the maglev project, was the latest to be raided. Its shares tumbled 5.3 per cent to more than a three-month low. Peers Shimizu Corp and Kajima Corp were raided on Monday also on suspicion of antitrust breaches related to the projects. Obayashi Corp is already under investigation for suspected bid-rigging over maglev-related contracts.

Shimizu dropped 3.0 per cent, Kajima shed 5.4 per cent, while Obayashi declined 1.6 per cent. The scope of the probe has broadened the scale of the suspected wrongdoing remained unknown and prosecutors declined to comment. Brokerage stocks outperformed, with Nomura Holdings gaining 1.1 per cent and Daiwa Securities rising 1.3 per cent. The broader Topix shed 0.1 per cent to 1,815.86.

Related Topics
comment COMMENT NOW