Nikkei extends morning losses as China skids; telecoms remain sold

Japan’s Nikkei share average extended its losses on Monday afternoon, falling as much as 1.7 per cent as Chinese markets slid and telecommunication shares continued to be sold off after Prime Minister Abe called on cellphone companies to reduce rates.

The Nikkei share average fell 1.7 per cent to 17,931.29 amid cautious afternoon trading.

Softbank Group Corp shares fell 6.2 per cent in afternoon trading, while competitor KDDI Corp fell 8 per cent and NTT Docomo tumbled 9.2 per,cent.

Market players said investors remained cautious ahead of Bank of Japan and US Federal Reserve policy meetings this week.

“Until we have some visibility on the rate environment, expect the malaise in equity markets to continue,’’ said Martin King, co-managing director at Tyton Capital Advisors in Tokyo.

The broader Topix shed 1.3 per cent to 1,459.98 in early afternoon trading.