Early gains in Tokyo were wiped out on Tuesday as investors sold off a wide range of utility stocks.

The benchmark Nikkei 225 index closed up 3 points at 9,014 in Tokyo while the
Hang Seng was closed for a holiday. Stocks in Hong Kong closed up 145 points at 21,697 in the previous session.

Utilities such as Kansai Electric Power Co fell sharply after it said it would not be paying its annual dividend as previously announced. The group said it had dropped its dividend payment, for the first time in over 60 years, due to the surging price of imported oil and gas. Most of the group's nuclear reactors are still offline.

Peer Chubu Electric Power sank 9.9% while Tokyo Electric Power fell 1.5%

Elsewhere shares of Hitachi fell 3.3% as profit takers moved in following last week's strong gains.

In earnings news ketchup and tomato products maker Kagome skidded 3% after it slashed its operating profit forecast after lifting it previously in July.

Fuji Heavy Industries provided some cheer, rising nearly 4%, after it hiked its second half operating profit forecast by over a third.

Japanese transportation conglomerate Fuji Heavy Industries also upped its half year operating profit forecast by 34%. Its shares rallied 3.7% after it said strong sales and a higher price for its Subaru car brand in the US had compensated for weak sales to China.

Energy stocks came under pressure as crude oil prices fell under $89 a barrel late Monday on the New York Mercantile Exchange. Shares of Japan Petroleum Exploration retreated 1% while JX Holdings lost 1.5%.


CJ

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