Nikkei drops ahead of earnings season

The Japanese Nikkei index trimmed its losses to close lower on Friday and stop rising before the season of companies announcing their earnings, but it achieved gains for the sixth month in a row as a result of investors’ appetite to buy falling stocks.

The Nikkei fell 0.14% to 33,189.04 points at the close, after falling 0.9% earlier in the session. Over the course of the week, the index recorded gains of 1.24 percent, recovering from its losses at the beginning of the week after ten consecutive weeks of increases.

The broader Topix index fell 0.33 percent to 2,288.60 points at the close.

The Nikkei index rose to its highest level in three decades earlier this month, boosted by a boom in chip-related companies and an influx of investment in trading companies after billionaire investor Warren Buffett said he was increasing investments in the sector.

But foreign investors, who led the gains, turned for the first time into sellers of Japanese stocks last week after 12 consecutive weeks of buying.

Chipmaking equipment maker Tokyo Electron fell 1.03 percent, putting the biggest pressure on the Nikkei. Shin Etsu Chemical and silicon wafer maker fell 0.4 percent. Medical equipment maker Terumu fell 1.49 percent.

Bucking the trend, Takashimaya rose 7.7 percent after the convenience store operator raised its annual operating profit forecast. Isetan Mitsukoshi Holdings also rose 2.27 percent.

Fast Retailing, which owns the Uniqlo brand, rose 1.58 percent, becoming the Nikkei’s biggest supporter. Contact lens maker Hoya rose 1.1 percent. Kikkoman soy sauce maker rose 1.02 percent.