Japanese shares slip as chip stocks take hit from outlook worries

Fujikura

12/08/2021 07:47

TOKYO, Aug 12 (Reuters) - Japanese shares fell on Thursday,
after four straight sessions of gains, as chip-related shares
were hit by concerns that their best days may be over as
supplies are coming back.
    The country's worsening coronavirus infections hit shares of
travel-related sectors anew, while falling support for Prime
Minister Yoshihide Suga raised more concerns about political
stability ahead of an election expected later this year. 
    The tech-heavy Nikkei share average  .N225  fell 0.20% to
28,015.02, with its early gains blocked by resistance from a
downward-sloping trendline at around 28,270.
    The broader Topix  .TOPX  fared less badly, ending down
0.03% at 1,953.55.
    "The Nikkei still appeared to be kept in a downward trend,
reflecting concerns about the tech sector while the Topix is
essentially moving sideways," said Fumio Matsumoto, chief
strategist at Okasan Securities.
    "It's not like markets expect Japan's COVID-19 situation to
deteriorate sharply. But it is hard to see it improving quickly
either," he added.
    Market players said chip-related shares were hit by a Morgan
Stanley report that called on investors to be cautious on the
sector, saying some parts of the memory chip market could be
peaking out.
    Sumco  3436.T  lost 2.7%, Advantest  6857.T  shed 2.2% and
Screen Holdings  7735.T  fell 1.8%.
    Worries about China's recent crackdown on the tech sector
continued to weigh on SoftBank Group  9984.T , which holds a big
stake in Alibaba  BABA.N  and some other Chinese tech firms.
    SoftBank fell 0.9% to hit a nine-month closing low.
    Rakuten Group  4755.T , a mobile phone services and online
shopping mall operator, lost 6.4% after its earnings missed
estimates, while Toshiba  6502.T  fell 4.1% on reporting
mediocre results.  urn:newsml:reuters.com:*:nXB07A2NTG  urn:newsml:reuters.com:*:nXB12RJT1U
    TSE land transport index  .IRAIL.T , mainly composed of
train operators, was the worst performing industry subindex with
a fall of 0.94%, followed by a 0.75% slip in airline companies
 .IAIR.T  
    On the other hand, SMC Corp  6273.T  rose 3.7% after the
industrial equipment maker raised its annual operating profit
forecast by 15.6%.
    
    
    ($1 = 110.34 yen)

 (Reporting by Junko Fujita and Hideyuki Sano; editing by
Uttaresh.V and Amy Caren Daniel)
 ((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net;))