TOKYO, April 30 (Reuters) - Japan's Nikkei share average
fell on Thursday as a deadlock in U.S.-Iran peace negotiations
and mixed corporate earnings kept investors on the sidelines,
overshadowing stellar artificial intelligence-driven results
from major U.S. tech companies.
The Nikkei 225 Index was down 0.8% at 59,427.56,
ahead of a midday recess. The broader Topix slid 1.4% to
3,719.52.
"Amid concerns over the situation in the Middle East and
with earnings reports set to be released soon, the market is in
a wait-and-see mood," said Naoki Fujiwara, senior fund manager
at Shinkin Asset Management.
"Since this falls between holiday periods, buying interest
is not especially strong, and because price levels remain high,
profit-taking is emerging."
Oil prices extended gains on Thursday after rising more than
6% in the previous session on supply concerns as talks to end
the U.S.-Israeli war on Iran have deadlocked.
AI-related shares on the Tokyo bourse were mostly lower,
even after Alphabet topped Wall Street estimates for
quarterly revenue as enterprise spending on AI delivered the
best quarter of reported growth for its cloud unit yet.
Chip-testing equipment maker Advantest ( ADTTF ) was down 3.1% and
chip-making equipment maker Tokyo Electron ( TOELF ) traded nearly 1%
lower.
IT services firm Fujitsu ( FJTSF ) was the biggest daily
percentage loser, plummeting as much as 15.2% in its biggest
drop in 11 years after its earnings outlook missed analysts'
expectations.
Shares of Oriental Land ( OLCLF ) lost 8.6% after the Tokyo
Disney Resort operator said it would see a decline in operating
profit for this year due to increased labour costs and repair
expenses. Telecom and IT solutions provider NEC shed
6.7%.
Bucking the overall trend, TDK shares rose to a record high
after the electronic components maker forecast a 15% increase in
net profit for the current business year, above analysts'
estimates.
Sumco ( SUMCF ), a leading silicon wafer supplier for
semiconductors, jumped 15.1% and Renesas Electronics ( RNECF ) ,
a microcontroller and automotive chips maker, advanced roughly
10%.