TOKYO, Oct 21 (Reuters) - Japanese shares fell on Thursday
as the Nasdaq's weak overnight finish hurt risk appetite,
prompting investors to sell heavyweight technology stocks, but
expectations for strong earnings results from domestic firms
The Nikkei share average was down 0.30% to 29,167.69
by 0211 GMT, while the broader Topix fell 0.26% to
Overnight, the S&P 500 and the Dow rose, with the Dow
hitting an intraday record high, while the Nasdaq lagged as
technology stocks took a breather.
"The Nasdaq's weak finish affected shares such as SoftBank
Group, and Recruit, which is seen as an equivalent of the GAFA
because it owns U.S. job research engine," said Norihiro Fujito,
chief investment strategist, Mitsubishi UFJ Morgan Stanley
Global technology start-up investor SoftBank Group
fell as much as 2.16% earlier in the session before edging up
Staffing agency Recruit Holdings, which has built
footsteps in the U.S. through employment site Indeed, fell
Chip-making equipment maker Tokyo Electron dragged
the Nikkei the most, falling 2.73% but snapped its early losses
of as much as 3.9%.
Other Japanese chip related shares also fell after the
weaker-than-expected earnings of semiconductor companies ASML
and Lam Research, but results were not so
pessimistic when examining details, Fujito said.
"We can expect strong earnings from Tokyo Electron as there
is a demand for chips, which is why the stock has pared its
Airlines, down 1.93%, lost the most among the
exchange's 33 industry subindexes amid concerns about a possible
resurgence of the COVID-19 infections as cases in the UK rose.
Oil related shares shined as oil
Nippon Paint Holdings advanced 2.93% after the
world's fourth largest paint company announced an acquisition of
decorative paints specialist Cromology.
(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri)