TOKYO: Japan’s Nikkei share average fell on Thursday, as heavyweight chip-related stocks tracked US peers’ declines overnight, while gains in energy shares limited the losses.
The Nikkei was down 0.18% at 38,625,22 by the midday break, set for a fourth straight session of falls.
The broader Topix was little changed at 2,648.66.
“Japan’s major chip stocks mirrored the weak performance of US chip stocks. It looks like the fever for Nvidia is over,” said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
“For the Nikkei to cross the 40,000 level again, Tokyo Electron and its peers need to get a boost.”
The S&P 500 and Nasdaq edged lower overnight as investors took profits in chipmaker stocks.
The index of semiconductors lost 2.5%, with shares of Nvidia. which propelled a sharp rally in Japanese chip-related shares, slipping 1.1%.
The Nikkei crossed 40,000 for the first time earlier this month, driven by gains of chip-making equipment maker Tokyo Electron and chip-testing equipment maker Advantest.
Tokyo shares close lower ahead of US data
On Thursday, Tokyo Electron and Advantest lost 1.82% and 2.87%, respectively. Silicon-wafer maker Shin-Etsu Chemical lost 1.83%.
Refiners jumped 4.24% to become the top performer among the 33 industry sub-indexes on the Tokyo Stock Exchange, with Eneos Holdings rising 5.14%.
Energy explorers rose 4.17%. Nissan Motor rose 2.3% after a local television network TV Tokyo reported that the automaker is considering seeking a business partnership with Honda Motor, while the Nikkei business daily said they could collaborate on electric vehicles.
Honda rose 0.98%.
Uniqlo-brand owner Fast Retailing rose 1.2% to become the biggest support for the Nikkei.
Of the 225 components on the Nikkei, 151 stocks rose and 74 fell.
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