Japan's steel shares take centre stage

TOKYO, Japan -- Tokyo's Nikkei average opened slightly lower on Monday as money shifted from high-tech shares into low-priced manufacturers.

This followed the unveiling of a major realignment in the steel sector, pushing the tech-sensitive Nikkei average down 21.38 points or 0.16 percent at 13,364.34 at 0012 GMT.

The capital-weighted TOPIX index fell 1.32 points or 0.10 percent to 1,297.88.

"I would call it a shift of money rather than a decline. Investors just see upward potential in conventional manufacturers after the NKK-Kawasaki deal and high-techs' three-day winning streak up until Friday," said Kazunori Jinnai, equities general manager at Daiwa Securities SMBC.

NKK Corp and Kawasaki Steel Corp said on Friday they had agreed to set up a joint holding company in October 2002 to create Japan's largest steelmaking group, surpassing Nippon Steel Corp on a group basis.

Kawasaki Steel rose 4.65 percent to 135 yen while NKK gained 4.31 percent to 121 yen. Other steelmakers were also higher on expectations of further realignment in the sector.

Technology stocks take a breather

Sumitomo Metal Industries Ltd jumped 5.75 percent to 92 yen, Kobe Steel put on 5.06 percent to 83 yen, and industry leader Nippon Steel Corp, whose crude steel output would be surpassed by the new NKK-Kawasaki group, was up 1.38 percent at 220 yen.

Major technology stocks took a breather after last week's sharp gains, which were inspired by a strong performance by the tech-rich U.S. Nasdaq market.

Chip and computer maker Fujitsu Ltd fell 1.16 percent to 1,625 yen while electronics giant Sony Corp dipped 0.7 percent to 8,570 yen.

Shares markets in Australia, New Zealand, Hong Kong and Thailand are closed Monday.

Reuters contributed to this report.

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