Japan's Nikkei ends lower on chip declines, Topix ticks up on Toyota

TOKYO: Japan's benchmark Nikkei index ended lower on Wednesday as chip-related stocks tracked overnight weakness in US peers, although hopes for a vaccine-driven domestic economic recovery lifted cyclical shares.

The Nikkei share average fell 0.51 per cent to close at 29,291.01, while the broader Topix ticked up 0.02 per cent to 1,975.86, supported by Toyota Motor as the automaker hit another record high.

"Many investors are holding their bets as they await the outcome of the Federal Reserve meeting, but cyclical stocks that are set to benefit in the post-pandemic era are solid," said Yutaka Miura, senior technical analyst at Mizuho Securities.

Wall Street's all three major indexes dropped overnight as markets awaited fresh guidance from the US Federal Reserve.

Following declines in the Philadelphia Semiconductor index, chipmaking equipment supplier Tokyo Electron fell 1.1 per cent and semiconductor test equipment supplier Advantest ticked down 0.19 per cent.

But shares of energy, material and shipping companies advanced.

Among them, Japan's biggest oil and gas explorer Inpex jumped 3.7 per cent as oil prices hit their highest in more than two years.

Hopes for an economic reopening lifted department store shares, with Takashimaya jumping 2.07 per cent and Isetan Mitsukoshi Holdings edging up 0.24 per cent.

Conglomerate Hitachi and air-conditioner maker Daikin Industries also supported the Topix by rising 2.48 per cent and 2.22 per cent, respectively.

Kawasaki Kisen Kaisha gained 4.94 per cent and was the top gainer on the Nikkei, followed by CyberAgent, which added 3.99 per cent.

The largest loser was Unitika, falling 3.38 per cent, followed by GS Yuasa, losing 3.2 per cent, and Sony Group , down 2.86 per cent.

The volume of shares traded on the Tokyo Stock Exchange's main board was 1.03 billion, compared with the average of 1.18 billion in the past 30 days.

The Mothers Index of start-up firm shares fell for the first time in eight days, losing 0.13 per cent.