Japan's Nikkei ends lower as AI-related stocks decline
Japan's Nikkei ends lower as AI-related stocks decline Updates with closing prices
By Junko Fujita
TOKYO, Aug 7 (Reuters) - Japan's Nikkei share average ended marginally lower on Friday, as declines in AI and chip-related stocks outweighed broader gains, while SoftBank Group slid despite beating market expectations for first-quarter earnings.
The Nikkei .N225 ended 0.12% lower at 65,606.71, after falling as much as 1.57% earlier in the session. The broader Topix .TOPX rose 0.47% to 4,074.93.
For the week, the Nikkei rose 1.9% and the Topix gained 1.8%.
SoftBank Group 9984.T dropped 2.51% on Friday. The technology investor posted a smaller-than-expected first-quarter profit drop on Thursday.
"It (SoftBank Group) beat market consensus, but failed to provide cues that could lift the stock price," said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
Chip-related Advantest 6857.T and Tokyo Electron 8035.T fell 2.25% and 1.5%, respectively, while memory chip maker Kioxia 285A.T lost 2%.
"Market concerns about overvaluation of these stocks have eased, and their earnings are not bad, but investors are still not fully confident about a rebound in stock prices," said Fujiwara.
Fujikura 5803.T surged 12.82% to support the Nikkei the most after the fibre-optic cable maker raised its annual net profit forecast during trading hours.
Overall, about 60% of stocks traded higher on the Tokyo Stock Exchange's prime market.
Nintendo 7974.T rose 5.26% after the game maker said on Thursday its operating profit soared 150.5% in the April-June quarter, helped by brisk demand for Switch and Switch 2 software and refunds of U.S. tariffs.
Audio equipment and camera maker Sony Group 6758.T rose 2.6%.
Bandai Namco Holdings 7832.T jumped 10.5% after the toy maker raised its half-year net profit forecast.
Kirin Holdings 2503.T rose 3.79% after the beer maker said it would acquire a Toronto-based vitamins and supplements maker, Jamieson Wellness.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu and Harikrishnan Nair)
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