TOKYO, Jan 21 (Reuters) - Japanese shares fell on Friday,
hit by losses in technology heavyweights after the Nasdaq
dropped 1% overnight as fears of inflation and higher interest
rates dented risk appetite.
The Nikkei share average closed 0.9% lower at
27,522.26, after losing more than 2% earlier in the session. The
broader Topix lost 0.59% to 1,927.18.
The Nikkei lost 2.1% for the week, its biggest in seven
weeks, while the Topix fell 2.5% in its worst week in eight.
"The market tracked Wall Street and chip-related shares
became a target of a sell-off after the Nasdaq's losses," said
Kazuharu Konishi, head of equities at Mitsubishi UFJ Kokusai
"There will be no positive or negative comments on U.S.
rates from Federal Reserve senior officials until the FOMC
(Federal Open Market Committee) next week, so investors will
Wall Street's main indexes closed sharply lower overnight,
as investors considered whether equities were bargains after a
sell-off to start the year that has seen the Nasdaq fall into
Chip-related stocks led the losses, with Tokyo Electron
losing 6.2%, Advantest dropping 3.98% and
Shin-Etsu Chemical shedding 2.07%.
Toyota Motor fell 2.48% after the automaker said it
would slow production at as many as 11 plants in Japan because
of rising COVID-19 infections among its workers and those at
As the coronavirus infections surge to a record, Japan's
western prefecture of Osaka and two neighbouring regions are
expected to join in a widening declaration of COVID prevention
measures, which already cover the capital Tokyo and a dozen
Despite the expected wider curb, airline and railway shares
were the top gainers among the exchange's
33 industry sub-indexes, gaining 3.84% and 1.54%, respectively.
ANA Holdings jumped 3.73% and Keisei Electric
Railway advanced 3.48%.
(Reporting by Junko Fujita; Editing by Rashmi Aich and