Nikkei falls, dragged down by chip stocks

Japan’s Nikkei fell on Wednesday, dragged down by chip-related shares after technology company Micron led the decline in US technology shares Tuesday night, while investors awaited data that could influence the Federal Reserve’s tightening path.

The Nikkei closed down by 0.65 percent at 27,819.33 points, and the broader Topix index fell 0.17 percent to 1933.65 points.

The Nasdaq closed lower on Tuesday after a bleak outlook from technology company Micron sent shares of technology and chip makers lower.

Tokyo Electron Chip Equipment Co. fell 2.75 percent, and Chip test equipment maker Advantest lost 3.8 percent.

Companies that reported solid profits won. Sumitomo Forestry shares jumped 8.34 percent after the home builder expected a profit for the year compared to its early estimates of losses.

Rohto Pharmaceuticals rose 14.1 percent after the drug maker raised its annual profit forecast.

But she said investors were on the lookout ahead of a local holiday on Thursday and pending US inflation data that could limit the pace of the Federal Reserve’s rate hike.