Japan's Nikkei reverses course to end lower as Fast Retailing tanks

Japan's Nikkei share average surrendered early gains to close lower on Friday as sharp declines in Fast Retailing led technology stocks to erase their gains.

The Nikkei slipped 0.19% to 39,569.68 after rising as much as 0.8% earlier in the session. The index fell 0.6% this week.

The broader Topix rose 0.39% to 2,823.24.


Fast Retailing tanked 6.93% after the Uniqlo brand owner said on Thursday higher U.S. tariffs would start impacting its U.S. operations significantly from later this year and that it plans to raise prices to mitigate the blow.

"Investors were worried about Fast Retailing's outlook for the next fiscal year. Still, gains of technology stocks supported the index," said Kentaro Hayashi, senior strategist at Daiwa Securities.

The market also sold stocks as soon as the Nikkei approached the psychologically important level of 40,000, strategists said.

Chip-related Advantest and Tokyo Electron rose 0.71% and 0.9%, respectively, to track a 0.75% gain in the Philadelphia SE Semiconductor Index overnight.

Air-conditioning maker Daikin Industries climbed 5.44%.

Banks advanced, aiding gains in the Topix, with Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rising 1.77% and 1.53%, respectively.

Toyota Motor added 1.39%.

Seven & I Holdings rose 3.28% after the convenience store operator posted a 9.7% jump in quarterly operating profit, beating analysts' estimate.

Of more than the 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 70% rose, 25% fell and 3% traded flat.