Japan's Topix slips as worries about corporate outlook weigh on chip stock gains

  • Reuters
  • Stock Market News
Japan's Topix slips as worries about corporate outlook weigh on chip stock gains

TOKYO, April 16 (Reuters) - Japan's Topix edged lower on Friday as gains in heavyweight chip stocks were capped by investor concerns about Japanese corporate outlook ahead of the earnings season.

The broader Topix .TOPX was down 0.19% to 1,955.50 by 0209 GMT, while the Nikkei index were almost flat at 29,636.41.

"Investors are getting cautious about corporate outlook ahead of earnings season starting next week," said Shingo Ide, chief equity strategist at NLI Research Institute.

"Their expectations were so strong that now they are concerned more firms might follow Yaskawa Electric which didn't meet market expectations."

Japanese major manufacturers will kick off their annual corporate earnings season next week, starting with electronic components maker Nidec 6594.T on Thursday.

Robot maker Yaskawa 6506.T , the leading indicator on Japanese manufacturers' earnings trend, this week disappointed investors with its profit outlook and its stock has lost more than 7% this week.

Chip-related shares gained after Taiwan Semiconductor Manufacturing Ltd (TSMC) 2330.TW , TSM.N reported a 19.4% rise in first-quarter profit on strong chip demand. 6857.T rose 0.57%, Tokyo Electron 8035.T gained 0.84% and Renesas Electronic 6723.T jumped 2.08%.

Toshiba 6502.T dropped 4.9% after a report that the conglomerate told its lenders that the company plans to reject a buyout proposal from private equity firm CVC Capital Partners. largest percentage gainers in the index were Toho 9602.T , up 2.41%, followed by M3 Inc 2413.T gaining 2.34% and Daiwa House Industry 1925.T , up 1.83%.

Nippon Yusen 9101.T , down 3.05%, was the largest loser on the index, followed by Tokyo Electric Power 9501.T , losing 2.96%, and Hitachi Zosen 7004.T , down 2.9%.

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