TOKYO — Japanese shares fell on Friday, with tech stocks leading the losses, as worse-than-expected earnings outlook from heavyweights Advanced Micro Devices and Samsung Electronics weighed on risk appetite.
Japan’s Nikkei share average lost 0.59% and looked on course to snap a four-day winning streak.
The index fell through the key 27,000 level when markets opened, but made a gradual recovery and was at 27,149.76 at the break. It has gained 4.67% so far this week.
The broader Topix lost 0.6%. Later in the day, the Tokyo Stock Exchange is likely to name hundreds of companies set to be removed from the index, in a move designed to attract more foreign investors.
Trade was limited as investors were cautious ahead of key US non-farm payroll data later in the day, while markets will be closed for a national holiday in Japan on Monday, said Kyoko Amemiya of Amemiya Soken.
Semiconductor manufacturing equipment maker Tokyo Electron Ltd led early selloffs on the news from AMD and Samsung Electronics, but pared losses to 0.2% by the break. As a major Nikkei contributor, Tokyo Electron still weighed heavily in the index.
“Worsening semiconductor earnings have increased the risk of countercyclical performance,” said Takashi Nakamura, a senior strategist at Tokai Tokyo Research Institute.
The Nikkei’s three best performers were railway companies, with Central Japan Railway Co, East Japan Railway Co , and West Japan Railway Co leading gains ahead of Japan reopening its borders for regular tourism next week.
Topix air transportation stocks rose 1.35% and land transportation stocks gained 1.06%, the only two sectors to gain overall.
Nintendo Co Ltd gained 0.63% after the release of the first trailer for its upcoming Super Mario Bros movie. Earlier this week the company officially launched Nintendo Pictures, a new movie-making subsidiary.
Shares of Seven & I Holdings Co Ltd fell the most in the Nikkei, losing 3.34% despite the company raising its profit forecast for the current financial year. (Reporting by Sam Byford and Tokyo markets team; Editing by Sherry Jacob-Phillips)