Global Markets | Japan's Nikkei gives up early gains as tech shares fall

Japan's Nikkei share average surrendered early gains to end lower on Tuesday, as technology heavyweights tracked overnight declines in their U.S. peers, even as positive data prompted investors to buy economically sensitive stocks.

The Nikkei fell 0.44% to 60,550.59, after rising more than 1% earlier in ‌the session, ⁠extending ⁠the losing streak to a fourth session.

The broader Topix rose 0.63% to 3,850.67.


"The market is trying to determine how much longer the declines of U.S. technology stocks will continue," said Yugo Tsuboi, chief strategist at Daiwa Securities.

"Investors also want to see the outcome of Nvidia earnings."

The Nasdaq and the benchmark S&P 500 closed lower on Monday as ⁠investors took ‌some profits in technology stocks.

Nvidia, the world's most valuable company, is scheduled to report results on Wednesday. The ⁠chipmaker was the S&P 500's biggest index-point drag on Monday, falling 1.3%.

In Japan, chip-making equipment maker Tokyo Electron lost 4.26% to drag the Nikkei lower the most.

Chip-testing equipment maker Advantest fell 3.29% and technology investor SoftBank Group slipped 4.15% and memory maker Kioxia fell 3.27%.

Fibre optic cable makers fell, with Fujikura and Furukawa Electric down 16.95% and 8.37%, respectively, to become the worst ‌percentage losers on the Nikkei.

Value shares rose after data showed Japan's economy grew faster than expected in the first quarter on solid exports ⁠and consumption.

"The growth was led by consumption. The market confirmed the strength of domestic demand," said Daiwa's Tsuboi.

Topix's value share index rose 1.02% against a 0.2% rise in the growth stock index.

Bank shares rose, with Mitsubishi UFJ Financial Group and Mizuho Financial Group climbing 3.77% and 5.53%, respectively.

Of more than 1,600 stocks on the Tokyo Stock Exchange's prime market, 71% rose, 27% fell and 1% traded flat.