TOKYO: Japan’s Nikkei edged down on Monday in range-bound trading, dragged lower by chip-related stocks that tracked their US peers, though overall Wall Street gains on upbeat jobs data limited losses.

The Nikkei share average fell 0.14% to 27,626.77 by the midday break, while the broader Topix inched up 0.06% to 1,945.51.

“The Japanese market was supported by gains on the US market over the weekend, while US futures kept its momentum,” said Yutaka Miura, senior technical analyst at Mizuho Securities.

“But investors were cautious making bets as they wanted to confirm the direction of the US market later today.”

Japanese shares fall on Wall Street weakness, profit-booking

On Friday, Wall Street rose modestly as the monthly jobs report indicated a strong labor market and is likely to keep the Federal Reserve on track to maintain its hawkish policy stance.

Chip-making equipment maker Tokyo Electron dragged the Nikkei the most, falling 2.45%, tracking a decline on the Philadelphia Semiconductor index.

Peers Advantest and Kyocera dropped 2.11% and 0.73%, respectively.

Railways and airlines were among the weakest sectors, falling 1.16% and 0.96%, respectively, as the number of new Covid-19 infections has turned to an upward trend.

On the bright side, drugmakers gained 1.87%. Astella Pharma and Shionogi & Co were the top gainers on the Nikkei, advancing 3.94% and 3.83%, respectively.

Zojirushi jumped 4.99% after the cooking appliance maker boosted its quarterly profits.

From Monday, the market was restructured into three new markets - prime, standard and growth - as the exchange adopted tougher listing criteria to attract more foreign investors.