Japanese stocks slip as tech shares, Fast Retailing retreat

  • Reuters
  • Stock Market News
Japanese stocks slip as tech shares, Fast Retailing retreat
Credit: © Reuters.

* Nikkei down 0.55 pct, Topix dips 0.27 pct

* Drop by Wall St shares, stronger yen weigh on market

* Tech shares hit after slide by US chip maker Micron

By Shinichi Saoshiro

TOKYO, July 4 (Reuters) - Japan's Nikkei slipped on Wednesday, as technology shares were hit by a slide in U.S. chip makers and sluggish sales weighed on index heavyweight Fast Retailing.

The Nikkei share average .N225 was down 0.55 percent at 21,665.48.

High-tech stocks tracked Wall Street peers. Tokyo Electron 8035.T dropped 4.4 percent, Advantest Corp 6857.T shed 4.8 percent, SUMCO Corp 3436.T fell 5.05 percent and Screen Holdings 7735.T lost 4.55 percent.

On Tuesday, the tech-heavy Nasdaq .IXIC slid 0.86 percent, with chipmakers sliding after Micron Technology Inc MU.O sank when a Chinese court temporarily barred it from selling 26 chip products in the mainland. Micron said it had not yet received such an injunction, but its shares lost 5.5 percent on Tuesday. the U.S. government moved to block China Mobile 0941.HK from offering services to the country's telecommunications market on Tuesday, keeping trade tensions on the boil ahead of July 6 when Washington is set to impose tariffs on $34 billion worth of Chinese goods. losses by U.S. shares and a stronger yen is weighing on the market, with some participants opting to close out their positions amid the ongoing trade concerns," said Yutaka Miura, senior technical analyst at Mizuho Securities in Tokyo.

"July 6 is key day of sorts, but the trade spat will remain a market theme as tensions are unlikely to go away before the U.S. midterm elections (in November)."

Elsewhere, Fast Retailing 9983.T retreated 1.2 percent after same-store sales at its Uniqlo clothing outlets in Japan fell 4 percent in June from a year earlier with a cold spell reducing demand for summer outfits. Corp 6752.T was down 1.6 percent after Tesla Inc TSLA.O tumbled overnight on the back of scepticism over its Model 3 vehicles. Panasonic supplies Tesla with automotive batteries.

Of Tokyo's 33 sub-indexes, 15 were in the red, led by precision machinery .IPRCS.T . Oil and coal products .IPETE.T led the gainers following a rise in crude oil prices.

The broader Topix .TOPX was 0.27 percent lower at 1,688.17. (Editing by Shri Navaratnam)

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