Chip-testing equipment maker Advantest sank more than 11%, its steepest drop in almost three years, after its earnings forecast missed market expectations. "Advantest is probably a bit of a wakeup call," said Mio Kato, founder of LightStream Research, who publishes on the SmartKarma platform. "I still think the theme for the year is a very weak tech space and an increasingly strong industrials space. So far, earnings are leaning that direction in Japan." Nomura joined major Wall Street firms in reporting a business slump following two U.S. banks' failures last month. U.S. stocks were mixed overnight, but the tech-heavy Nasdaq gained following upbeat earnings from Microsoft Corp and Google operator Alphabet Inc. Investors are awaiting U.S. inflation data on Friday ahead of the Federal Reserve policy decision next week, while Japan's central bank begins a two-day meeting on Thursday under new governor Kazuo Ueda.
Canon Inc surged 4.16% to its highest level this year after the imaging giant lifted its profit forecast. Sony Corp. jumped 2.84% ahead of earnings on Friday.
Denso Corp , a leading supplier to Toyota Motor Corp 7203.T, fell 0.39% after reporting fourth quarter operating profit that slightly missed analysts' estimates. Beverage giant Kirin Holdings slid 1.39%, after saying it plans to acquire Australian natural health firm Blackmores Ltd for about 169.2 billion yen($1.27 billion).
(Reporting by Rocky Swift; Editing by Rashmi Aich)
