Nikkei falls as electric component makers hit by Huawei fallout

* Murata, TDK, Taiyo Yuden, Tokyo Electron, TDK underperform
* SoftBank Group rises after T-Mobile deal for Sprint gets
boost
from FCC

By Ayai Tomisawa
TOKYO, May 21 (Reuters) - Japan's Nikkei slipped on Tuesday
as Washington's blacklisting of Huawei Technologies Co Ltd
HWT.UL took a heavy toll on suppliers to the Chinese telecoms
equipment maker.
The Nikkei .N225 fell 0.4% to 21,218.62 at the midday
break.
Since the White House added Huawei to a trade blacklist last
week, several global companies have suspended business with the
world's largest telecom equipment maker.
"We are worried that the move by the U.S. would lead to a
further deterioration of trade tensions between the United
States and China. If the trade worries drag on, Japanese
companies' earnings in the second half will also likely be hit,"
said Nobuhiko Kuramochi, a strategist at Mizuho Securities.
The electric machinery sector .IELEC.T tumbled 1.6%,
underperforming the overall market. Murata Manufacturing
6981.T shed 1.7%, TDK Corp 6762.T tumbled 2.7%, while Tokyo
Electron 8035.T and Taiyo Yuden 6976.T each slumped 2.9% and
Hitachi High-Technologies 8036.T dropped 2.4%.
According to Mizuho securities, sales to Huawei is estimated
to account for about 6-8% at these suppliers.
Other cyclical stocks also lost ground, with shippers Mitsui
OSK Lines 9104.T down sharply by 4.4% and Kawasaki Kisen
9107.T also losing 4.1%.
SoftBank Group Corp 9984.T , which has a stake in Sprint
Corp S.N , soared 3% after news that T-Mobile US Inc's TMUS.O
$26 billion acquisition of rival Sprint appeared to win the
support of a majority of the Federal Communications Commission
on Monday. Domestic-demand sensitive stocks outperformed as investors
stayed defensive. Realtor Mitsui Fudosan 8801.T rose 1.1%,
while drugmaker Daiichi Sankyo 4568.T gained 1.2%.
The broader Topix .TOPX dropped 0.6% to 1,546.35.
Declining issues outnumbered advancing ones 1,514 to 546.


(Editing by Shri Navaratnam)