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 per cent higher to 53,881.69 and was on course for a one per cent weekly gain. The broader Topix climbed 0.5 per cent 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 per cent, 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 per cent following a plunge in the previous session.

Food additive maker Ajinomoto soared 10 per cent, while Mitsubishi Motors jumped 8.5 per cent.

“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 per cent 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 per cent and precision parts maker Minebea Mitsumi slipped 6.5 per cent.

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

© New Straits Times Press (M) Bhd

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