Japan's Nikkei falls as chip-related shares decline on caution ahead of Nvidia earnings
- The Nikkei was down 0.5% at 65,197.7
TOKYO: Japan’s Nikkei share average fell on Tuesday, as chip-related stocks tracked declines in their US peers on caution ahead of Nvidia’s earnings.
The Nikkei was down 0.5% at 65,197.7 as of 0146 GMT, while the broader Topix inched up 0.06% to 4,075.83.
“The market is cautious ahead of Nvidia earnings due on Wednesday,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
“But value stocks are strong, such as shippers, which tend to be bought when Middle East tensions increase,” he said.
The shipping sector rose 2.91% to become the top performer among the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes.
The S&P 500 and Nasdaq ended lower on Monday, pulled down by technology stocks, as investors weighed fresh US economic sanctions against Iran and braced for a week that also includes a closely watched inflation report.
Quarterly results from chipmaker Nvidia are expected to be a key catalyst for markets.
Any sign of slowing growth could reignite concerns over stretched valuations. Shares of Nvidia fell for the seventh straight session.
In Japan, chip-testing equipment maker Advantest fell 3.33% and chip-making equipment maker Tokyo Electron fell 1.03%.
Memory chipmaker Kioxia fell 1.37%.
Declines in shares of Samsung Electronics also weighed on Japanese chip-related shares, Yasuda said.
Samsung Electronics traded 3.5% lower on Tuesday, after falling 8.70% in the previous session as the chipmaker’s record $79 billion shareholder-return plan disappointed investors. On the other hand, fibre optic cable makers rose, with Fujikura and Furukawa Electric up 4.15% and 6%, respectively.
Of more than 1,500 stocks trading on the TSE’s prime market, 53% rose, 43% fell and 3% traded flat.