Japan’s Nikkei struggles for direction as tech selloff weighs

TOKYO: Japan’s Nikkei share average swayed between gains and losses on Friday as a selloff in technology shares weighed on the market and investors remained cautious ahead of a crucial national election on Sunday.

The benchmark Nikkei 225 Index inched 0.1% higher to 53,881.69 and was on course for a 1% weekly gain.

The broader Topix climbed 0.5% to 3,671.61.

Investors are waiting for the outcome of Sunday’s general election, in which the ruling coalition led by fiscal dove Prime Minister Sanae Takaichi was expected to win by a landslide.

Chip-testing equipment maker Advantest fell 3.1%, making it the biggest drag on the Nikkei and extending its fall from Thursday.

SoftBank Group, a bellwether investor in artificial intelligence, edged up 0.15% following a plunge in the previous session. Food additive maker Ajinomoto soared 10%, while Mitsubishi Motors jumped 8.5%.

“Taking a cue from last night’s US market, some high-priced semiconductor and AI-related names are down, but their drops aren’t as large as (Thursday’s),” said Maki Sawada, a strategist at Nomura Securities.

“Since semiconductors have stood out for their declines over the past few days, if dip-buying were to come into these high-priced semiconductor stocks, the Nikkei’s losses could narrow from here.”

There were 129 advancers on the Nikkei index against 93 decliners. Nikon tumbled 8.5% to become the worst percentage loser on the Nikkei, after the camera maker downgraded its fiscal-year forecast to a net loss from a profit.

Soy sauce maker Kikkoman slid 8.2% and precision parts maker Minebea Mitsumi slipped 6.5%.

Shares of Japanese pharmaceutical companies also slumped after US President Donald Trump’s website offering discounted prescription medicines went live.