Japan's Nikkei set to snap winning streak after tech selloff



By Sam Byford

TOKYO, Oct 7 (Reuters) - Japanese shares fell on Friday, with tech stocks leading the losses, as worse-than-expected earnings outlook from heavyweights Advanced Micro Devices AMD.O and Samsung Electronics 005930.KS weighed on risk appetite.

Japan's Nikkei share average .N225 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 .TOPX 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 U.S. 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 8035.T 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 9022.T , East Japan Railway Co 9020.T , and West Japan Railway Co 9021.T leading gains ahead of Japan reopening its borders for regular tourism next week.

Topix air transportation stocks .IAIRL.T rose 1.35% and land transportation stocks .IRAIL.T gained 1.06%, the only two sectors to gain overall.

Nintendo Co Ltd 7974.T 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 3382.T 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

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.