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By Sam Byford
TOKYO, Oct 12 (Reuters) – Japanese shares were off after choppy trading on Wednesday, with slippages in technology companies countering gains by travel-related companies in a market that lacked direction from key U.S. inflation data this week.
Nikkei’s share average fell 0.18% and traded between losses and gains throughout the day, before closing up 0.02% at 26,396.83. The broader Topix lost 0.12%.
The biggest loser on the Nikkei was semiconductor equipment maker Tokyo Electron Ltd., which fell 4.39% amid struggles in the chips industry. The Philadelphia Semiconductor Index has declined for four straight sessions.
Hiroyasu Mori of Okachi Securities said: “It doesn’t look like growth stocks, especially semiconductor-related stocks, are the spark for the trend, as reports suggest that Apple’s iPhone production has increased.
“For now, the market appears to be selling high-tech stocks and buying stocks in response to domestic demand,” he said.
Interest was strong for system chip designer Socionext Inc., however, which began trading on Wednesday after what was said to be the largest IPO in Japan this year.
Shares of Socionext closed at 4,200 yen, up 15.07 percent from their initial price drop.
The yen fell to fresh 24-year lows, falling as low as $146.39. The Japanese currency had not fallen below 146 since 1998, when the Finance Ministry intervened and reached 145.9 in September.
A weak yen may help some Japanese exporters, who take advantage of cheaper foreign sales. Topix transportation equipment shares rose 1.06%, although this includes several automakers such as Mitsubishi Motors, which fell by 3.91%.
Overall, the market lost direction ahead of Thursday’s Consumer Price Index (CPI) report, which will be looked at for clues on inflation and possible rate hikes to tame it.
“The CPI has often been volatile, so many investors want to wait and see what happens,” said a strategist at a domestic securities firm.
The best performers on Nikkei were related to travel and retail as Japan opened its borders to normal tourism this week.
Central Japan Railway Co. and West Japan Railway Co. both gained more than 2%, while 7-11 owner Seven&I Holdings Co. and department store operator Aeon Co Ltd each jumped more than 3%.
Of Nikkei’s 225 components, 143 declined, 75 advanced and seven traded flat. (Reporting by Sam Byford and Tokyo Market Group; Editing by Subhanshu Sahu)
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