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TOKYO: Japan’s Nikkei share average fell on Thursday, reversing early gains amid caution around the Bank of Japan’s policy decision due Friday.

The Nikkei closed 0.4% lower at 38,720.47, after rising nearly 1% to cross the 39,000 level earlier in the session as chip-related stocks tracked their US peers.

Of the 225 Nikkei components, 44 stocks rose and 181 fell.

The broader Topix also gave up early gains, ending 0.89% lower at 2,731.78.

“The market was weaker than expected,” said Shuji Hosoi, senior strategist at Daiwa Securities.

“The Nikkei was barely in the positive territory earlier in the session supported by gains of chip-related stocks.” Shares of chip-testing equipment maker Advantest rose 1.54% and was the biggest support for the Nikkei, tracking overnight gains in the US semiconductor index.

However, chip-making equipment maker Tokyo Electron fell 1.66%, dragging the Nikkei the most.

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