TOKYO: Japan’s Nikkei ended lower on Thursday, as Tokyo Electron and Advantest led the losses among chip-related stocks after Micron Technology cut its memory chip supply and capital spending, while travel shares jumped on an increase in foreign tourists.

Micron was the first major chipmaker to sound an alarm about falling demand for personal computers and smartphones earlier this year in the face of decades-high inflation.

The Nikkei share average fell 0.35% to close at 27,930.57, while the broader Topix inched up 0.15% to 1,966.28. Chip-making equipment manufacturer Tokyo Electron fell 2.95% to be the biggest drag in the Nikkei, while chip-testing equipment maker Advantest slipped 3.14%.

“Those two stocks were blamed for today’s loss on the Nikkei,” Nomura Securities strategist Maki Sawada said.

Shares of Micron dropped 6.7% after the semiconductor firm said it would reduce memory chip supply and make more cuts to its capital spending plan, as it struggles to clear excess inventory due to a slump in demand.

The announcement sent Wall Street’s S&P 500 information technology sector 1.4% lower while the Philadelphia SE Semiconductor index slumped 4.3%.

Rohm fell 3.81% after the Japanese chipmaker said it was considering joining a consortium led by private-equity fund Japan Industrial Partners to buy out Toshiba.

Wall Street’s main indexes ended lower overnight, as a grim outlook from Target spurred fresh concerns about retailers heading into the crucial holiday season.

Tokyo stocks close slightly higher

Bucking the trend, retailers and railway operators jumped after the number of foreign visitors to Japan more than doubled in October from the previous month, as Japan fully reopened after more than two years of COVID-19 restrictions.

Department store operators Isetan Mitsukoshi Holdings jumped 5.55% and was the biggest gainer on the Nikkei, while Takashimaya rose 4.32% and Marui Group advanced 3.84%.

Train operators Tokyu Corp rose 3.90% and Tobu Railway climbed 3.70%.