Japan Shares Fall on Bleak Corporate Outlook

Japanese stocks fell on Thursday as disappointing expectations from technology companies led to selling, but gains by major chip-related companies limited losses.

The Nikkei index closed down 0.96 percent at 28,820.09 points, while the broader Topix index fell 0.7 percent to 1999.66 points.

Robotics maker Fanuc slumped 8.66 percent after cutting expectations for this year, citing a lack of chips and other components.

Hitachi shares lost 1.92 percent, as production cuts by automakers due to a shortage of chips affected the technology company.

Computer maker Fujitsu sank 8.14 percent, after its forecast missed market estimates.

On the other hand, Shin Etsu Chemical rose 2.89 percent, and Screen Holdings for chipmaking equipment jumped 8.22 percent, supported by strong results.

Shares of its peers Tokyo Electron and Advantest also rose 2.02 percent and 5.03 percent, respectively, which limited Nikkei’s overall losses.

The airline index was one of the sectors that gained among the 33 sub-indices, rising 0.55 percent amid a sharp drop in new COVID-19 cases.