TOKYO: Japan’s Nikkei share average reversed early gains to trade marginally lower on Friday as declines in Uniqlo-brand owner Fast Retailing erased gains in technology heavyweights.
The Nikkei was down 0.1% to 39,595.96 as of 0158 GMT, after rising as much as 0.8% earlier in the session.
The index is on track to lose 0.5% for the week.
The broader Topix was up 0.73% at 2,832.86.
Fast Retailing tanked 6.7% after the company said on Thursday higher US tariffs would start impacting its US operation significantly from later this year and it planned to raise prices to mitigate the blow.
“Investors were worried about Fast Retailing’s outlook for the next fiscal year. Still, gains of technology stocks supported the index,” said Kentaro Hayashi, senior strategist at Daiwa Securities.
The market also sold stocks as soon as the Nikkei approached the psychologically important level of 40,000, strategists said.
Chip-testing equipment maker Advantest rose 0.9% to track a 0.75% gain in the Philadelphia SE Semiconductor Index overnight.
Air-conditioning maker Daikin Industries climbed 2,87%. Silicon wafer maker Sumco jumped 3.95% to become the best percentage gainer on the Nikkei.
Bank shares advanced, aiding gains in the Topix, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rising 2.66% each. Toyota Motor added 1.66%.
Seven & I Holdings rose 3.63% after the convenience store operator posted a 9.7% rise in quarterly operating profit, beating analysts’ estimates.
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