Japan's Nikkei slips as tech losses weigh; softer yen buoys exports
Updates with levels as of 0230 GMT
By Brigid Riley
TOKYO, Aug 27 (Reuters) -Japan's Nikkei share average dipped in morning trade on Tuesday, as domestic technology shares followed declines on Wall Street to drag on the index, while a pause in the yen's push higher supported buybacks of export-related shares.
The Nikkei .N225 was down 0.1% at 38,055.62 by the midday break, while the broader Topix .TOPX rose 0.3% to 2,669.84.
The S&P 500 finished lower on Monday, with AI heavyweight Nvidia NVDA.O dipping ahead of its quarterly report this week. The tech-heavy Nasdaq .IXIC also declined.
Japanese technology shares tracked theirU.S. peers lower, with chip-related majors Tokyo Electron 8035.T and Advantest 6857.T, which counts Nvidia among its customers, dragging the overall Nikkei. The shares fell 2.5% and 2.1%, respectively.
Investors were taking a wait-and-see approach ahead of chip star Nvidia's earnings report onWednesday, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
Nvidiahas been at the center of market enthusiasm for artificial intelligence, and there is pressure on thefirm to pull out stellar results.
"We're in a situation where the bar has risen," Ichikawa said, adding that if Nvidia's earnings come in as expected, there might be some brief selling of tech shares.
Technology shares saw the biggest percentage losses, with Lasertec Corp 6920.T down 4.7%, followed by Disco Corp 6146.T losing 3.1% and Hitachi 6501.T down 2.8%.
However, the yen's climb higher against the dollar stalled on Tuesday, prompting investors to buy back export-related stocks that took a hit in the previous sessionas the yen touched a three-week high of 143.45. FRX/
Sony Group 6758.T was up 1.7%, Honda Motor 7267.T gained 1.4%, and Toyota Motor 7203.T rose 1%.
The yen's pause helped lift the broader Topix index into positive territory, while limiting losses on the Nikkei.
Among the Tokyo Stock Exchange's 33 industry sectors, mining .IMING.T rallied 2% and oil and coal .PETE.T rose nearly 1% afteroil prices surged overnight on concerns of possible supply disruptions.
Reporting by Brigid Riley; Editing by Rashmi Aich and Eileen Soreng
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