Nikkei falls as Nvidia's poor results dent chip sector
* Advantest, Tokyo Electron, SoftBank fall after Nvidia's
* Prevision machinery makers drop after report China has
* Nikkei has dropped 2.2 percent for the week
By Ayai Tomisawa
TOKYO, Nov 16 (Reuters) - Japan's Nikkei fell on Friday as a
drop in semiconductor-related stocks weighed after U.S.'s Nvidia
disappointed the market with worse-than-expected earnings.
The Nikkei share average opened slightly higher but
was down 0.3 percent at 21,733.17 points by midmorning.
The Nikkei has dropped 2.2 percent so far this week, hit
mostly by a drop in oil prices and weakness in Apple suppliers
and other tech shares.
"It started with Apple, then Nvidia... Since performances of
these companies set the tone for the global tech and chip
industries, related Japanese stocks will likely be sluggish for
a while," said Takatoshi Itoshima, a strategist at Pictet Asset
"We not only have U.S.-China trade matters that haven't been
resolved but also other global issues like political uncertainty
in the U.K and worries about Italy. Investors are reluctant to
take risks now."
Chip equipment makers were sold, with Advantest Corp
diving 6.5 percent and Tokyo Electron tumbling
Daifuku Co, which provides cleanroom automation
systems, slumped 5 percent after chip designer Nvidia Corp
forecast disappointing sales for the holiday quarter.
It also posted sales that missed expectations for its third
SoftBank Group Corp, which invests in Nvidia,
dropped 3.1 percent.
Elsewhere, KYB Corp, a maker of earthquake shock
absorbers, nosedived 10 percent after the company said that an
external probe into data falsification in earthquake shock
absorbers showed a need for further investigation.
Separately, the Nikkei business daily reported that China's
Ministry of Commerce has begun an investigation into alleged
dumping of precision machinery by Fanuc Corp and four
other Japanese companies including Okuma and Brother
Fanuc shed 1.1 percent, while Okuma and Brother declined 2.7
percent and 1.6 percent, respectively.
The broader Topix dropped 0.6 percent to 1,628.44.
Declining issues outnumbered advancing ones 1,567 to 461.
(Editing by Kim Coghill)
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