TOKYO: Japan’s Nikkei share average fell on Thursday following two straight sessions of advances, as chip stocks sank in line with US peers. Investors were also cautious ahead of earnings from bellwether companies, including motor-maker Nidec and chip-making tool maker Disco Corp, after the market close.
The Nikkei sank 1.24% to 32,490.52 to close near the day’s low. The index had risen 1.6% over the last two sessions, which brought it just below the key psychological 33,000 mark, where the closely watched 25-day moving average also sits.
“The Nikkei gained steadily over the last couple of days to get to this point, but ultimately the 25-day moving average is proving to be a barrier to further gains,” said Maki Sawada, a strategist at Nomura Securities.
“A focal point for investors is if it can recover above that level quickly.”
The Nikkei closed at a 33-year high of 33,753.33 on July 3, before retreating as much as 5.8% till July 12. The Topix finished the day down 0.79% at 2,260.90, with tech names less dominant on the broader index.
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Chip-testing equipment maker Advantest was the Nikkei’s biggest drag, shaving off 62 index points with its 4.18% decline.
Chip-making equipment giant Tokyo Electron erased a further 28 points with a 1.33% slide. Chipmaker Renesas Electronics suffered a 3.1% loss.
Overnight, the Philadelphia SE Semiconductor Index sank more than 1%, falling back from a near 18-month peak.
Uniqlo store operator Fast Retailing was another major loser, falling 1.67%. Of the Nikkei’s 225 components, 156 declined versus 66 that rose, with three flat.
Automakers were among the winners after a weakening in the yen overnight boosted the value of overseas revenue.
Subaru gained 2.01% and Mazda added 0.93%. Nissan climbed 1.38%, garnering additional support from its decision to adopt Tesla’s charging network in North America.
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