TOKYO, July 28 (Reuters) - The Nikkei fell to a near
six-month low on Wednesday, as a retreat in Wall Street and
concerns about rising coronavirus cases soured sentiment ahead
of the U.S. Federal Reserve's policy meeting.
Shin-Etsu Chemical dipped despite fairly upbeat
earnings, while Apple suppliers slipped following the U.S. tech
giant's results, signalling some growth stocks could face
hurdles as the earnings season comes into a full swing.
Nikkei share average fell 1.39% to 27,581.66, edging
near a 6-1/2-month low of 27,330 touched last week. The broader
Topix declined 0.95% to 1,919.65, led by 1.28% fall in
The fall came after U.S. peers dipped ahead of the Fed's
policy meeting later in the day and as COVID-19 cases in Tokyo
jumped to a record high of 2,848.
Shin-Etsu dropped 1.3% after the silicon wafer
manufacturer's forecast of a record profit for the current year
came almost in line with market expectations.
"Shin-Etsu Chemical's earnings were pretty good but today's
market reaction shows the market won't react favourably unless
there is a positive surprise," said Norihiro Fujito, chief
investment strategist at Mitsubishi UFJ Morgan Stanley
"While global economic recovery supports the market on the
whole, there are risk factors such as rise in coronavirus cases
due to Delta variant, concerns about China's crackdown on tech
firms. We could see the Nikkei testing 27,000."
Suppliers of Apple saw lacklustre trade as the
company forecast revenue growth would slow.
Ibiden dropped 2.5%, while Murata Manufacturing
Makuake fell 15.9%, its daily limit, after the
crowdfunding firm slashed its profit outlook for the current
Bicycle maker Shimano jumped 4.2% after it raised its profit
forecast above analysts' average estimate.
Nisshin Seifun Group rose 4.2% after the flour
milling and food company raised its annual earnings forecast
following bumper profits in the April-June quarter.
Mitsubishi Motors jumped 8.4% after the embattled
automaker revised up its earnings outlook.
SoftBank Group dropped 4.8% to an eight-month low
on worries about China's crackdown on tech firms.
(Reporting by Hideyuki Sano; editing by Vinay Dwivedi)