(Updates with closing prices)
By Junko Fujita
TOKYO, July 16 (Reuters) - Japan's Nikkei share average
ended flat on Wednesday, as concerns surrounding the elections
to the upper house and the fate of trade negotiations with the
United States overshadowed gains from chip-related shares.
The Nikkei inched 0.04% lower at 39,663.4. The
broader Topix fell 0.21% to 2,819.4.
"Investors have excuses for not buying or selling stocks,"
said Shigetoshi Kamada, general manager at the research
department at Tachibana Securities.
"They are cautiously awaiting the outcome of the upper house
election, while the outlook of the trade talks between is not
clear even as the deadline approaches."
Opinion surveys suggest Prime Minister Shigeru Ishiba's
coalition may lose its majority in the elections scheduled for
July 20, forcing it to court an array of smaller parties pushing
for easier fiscal and monetary policy.
Chip-related heavyweights Tokyo Electron ( TOELF ) and
Advantest ( ADTTF ) rose 1.75% and 0.64%, respectively, to track
Nvidia's ( NVDA ) 4% gain overnight.
Nvidia ( NVDA ) unveiled plans to resume sales of its H20 AI chip to
China, pushing the Nasdaq Composite to end at another
record high.
Toho jumped 10.09% after the creator of the
"Godzilla" movie franchise raised its annual net profit
forecast.
Uniqlo-brand owner Fast Retailing ( FRCOF ) slipped 0.91% to
weigh on the Nikkei the most.
Toyota Motor ( TM ) lost 0.89% even as the yen fell to a
more than three-month low against the dollar.
"Investors could not buy Toyota ( TM ) despite the yen's weakness
because they are concerned about the tariff negotiations," said
Kamada.
Local media reported Prime Minister Shigeru Ishiba is
arranging to meet with U.S. Treasury Secretary Scott Bessent in
Tokyo on Friday ahead of an August 1 deadline to strike a trade
deal with the United States, else face punishing tariff of 25%.