TOKYO, Jan 21 (Reuters) - Japanese shares fell on Friday,
with technology heavyweights tracking Nasdaq's 1% fall
overnight, as fears of inflation and higher interest rates
dented risk appetite.
The Nikkei share average lost 1.5% to 27,365.50 by
0221 GMT, after losing as much as 2.3%. The broader Topix
fell 1.02% to 1,918.77.
The Nikkei is down 2.6% for the week, while the Topix was
"The market tracked the Wall Street and chip-related shares
became a target of a sell-off after the Nasdaq's losses," said
Kazuharu Konishi, head of equities at Mitsubishi UFJ Kokusai
"There will be no positive or negative comments on the U.S.
rates from Federal Reserve senior officials until the FOMC
(Federal Open Market Committee) next week, so investors will
Wall Street's main indexes ended sharply lower overnight, as
investors considered whether equities were bargains after a
sell-off to start the year that has seen the Nasdaq fall into a
Chip-related stocks fell, with Tokyo Electron
losing 6.3%, Advantest dropping 4.18% and Shin-Etsu
Chemical losing 2.46%.
Toyota Motor fell 2.45% after the automaker said it
would slow production at as many as 11 plants in Japan because
of rising COVID-19 infections among its workers and those at
As the coronavirus infections surge to a record, Japan's
western prefecture of Osaka and two neighbouring regions are
expected to join in a widening declaration of COVID-19
prevention measures, which already cover the capital Tokyo and a
dozen other regions.
Despite the wider curb, airlines and railway shares
advanced, with ANA Holdings
gaining 1.57% and West Japan Railway rising 1.56%.
(Reporting by Junko Fujita; Editing by Rashmi Aich)