Stocks lost further ground in thin trading on the Tokyo Stock Exchange Friday, with active buying held in check amid a dearth of fresh positive incentives.
The 225-issue Nikkei average lost 123.28 points, or 0.57 percent, to end at 21,680.34, after losing 42.86 points on Thursday.
The Topix index of all first-section issues finished down 9.67 points, or 0.59 percent, at 1,629.30. It fell 2.29 points the previous day.
Despite an overnight rally in U.S. stocks, both indexes moved on a weak note for most of Friday’s session as investor sentiment was dampened by disappointing sales projections for November-January by major U.S. chipmakers Nvidia Corp. and Applied Materials Inc., released on Thursday, brokers said.
Investors found it difficult to boost trading as there were few fresh domestic trading factors, with the earnings-reporting season nearly over, said Masayuki Otani, chief market analyst at Securities Japan Inc.
Investors refrained from active buying in light of concerns about bearish stock price movements on Wall Street later Friday, Otani also said.
“Trading may continue sluggish next week,” an official of a bank-affiliated securities firm said, noting that foreign investors tend not to build up major positions ahead of Thanksgiving Day in the U.S.
Falling issues outnumbered rising ones 1,442 to 607 in the TSE’s first section, while 63 issues were unchanged.
Volume decreased to 1.424 billion shares from 1.500 billion shares on Friday.
Semiconductor-related names met with selling after the disappointing earnings projections of Nvidia and Applied Materials. Tokyo Electron lost 4.26 percent, Advantest fell 7.56 percent and Sumco dropped 7.96 percent.
Mitsui Mining and Smelting sagged 1.51 percent after Daiwa Securities Co. revised down its investment rating and target stock price for the nonferrous metal producer.
Other major losers included mobile phone carrier SoftBank Group and game-maker Nintendo.
On the other hand, Taiheiyo Cement gained 1.34 percent after Nomura Securities Co. raised its target price for the company.
Also on the plus side were clothing retailer Fast Retailing and Sumitomo Dainippon Pharma.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average lost 170 points to end at 21,650.