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The Economic Times
The Economic Times

Global Markets | Japan's Nikkei slumps to weekly loss on tech share profit-taking

Japan's Nikkei ​share average slumped on ​Friday, sending the benchmark index to a ​weekly loss, as traders took profits on high-flying tech shares heading into the weekend.

The Nikkei dropped 2%, or about 1,245 index points, to end the ‌day at ⁠61,409.29, ⁠reversing early gains of as much as 0.9%.

Chip-testing equipment maker Advantest was ​the biggest drag, slumping 7.9% to shave 544 index points from the Nikkei. ​Fellow heavyweight Tokyo Electron lost 1.8%.

Fujikura tumbled 7.4%, extending Thursday's 19% plunge following disappointing profit forecasts from the data-centre cable ​maker.

Japan's broader Topix slipped 0.4% to ⁠3,863.97, flipping from ‌an earlier 1.3% gain that took ​it to ​the highest since February 27, the day it ⁠marked a record peak at 3,938.68.

The Topix ​drew support from solid performances by energy and ​automaker shares, with ENEOS climbing 5.4% following favourable corporate results. Honda leapt 8.3%, extending gains from Thursday, when it pledged at least 800 billion yen ($5.1 billion) in shareholder returns over three years.

For the week, the Topix managed to rise ‌0.9%, although the Nikkei skidded to a 2.1% decline.

Compared to the Nikkei, "Topix has stood out this ​week" during the ​peak of the ⁠corporate reporting season as "earnings reports stoke some volatility in the market", said Nomura equities strategist Wataru Akiyama.

Among the 33 Topix industry ​groups, 18 fell on Friday. Nonferrous metals, which includes Fujikura and peer Furukawa Electric, sank 6.5% to be the worst performer.

Of the Nikkei's 225 components, 121 fell and 99 rose, with five ending flat.

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