(Updates with closing levels)
By Brigid Riley
TOKYO, July 24 (Reuters) - Japan's Nikkei share average
closed lower for a sixth consecutive session on Wednesday, as
mixed earnings from major U.S. tech firms and the yen's
continued rally weighed.
The Nikkei fell 1.11% to a one-month closing low of
39,154.85, also marking its longest losing streak since October
2021.
The broader Topix slid 1.42% to 2,793.12.
Wall Street had ended slightly lower on Tuesday, as
investors awaited earnings from Alphabet and Tesla
.
While Alphabet beat second-quarter earnings estimates, Tesla
reported its lowest profit margin in more than five years and
missed estimates.
Meanwhile, the yen rallied to a seven-week high of 154.36
per dollar on Wednesday, as markets priced in a 56% chance of a
rate hike at the Bank of Japan's July 30-31 monetary policy
meeting.
A stronger yen tends to hurt exporter shares, as it
decreases the value of overseas profits in yen terms when firms
repatriate them to Japan.
Traders will likely remain cautious of testing the limits of
yen weakness even if the BOJ doesn't strike a hawkish note next
week, said Charu Chanana, global market strategist and head of
FX strategy at Saxo.
"This means broader Japanese equities could face further
headwinds, especially if Big Tech earnings fail to meet the
massive expectations."
The U.S. Federal Reserve will also meet next week, while
Japan's earnings season will kick into high gear.
Uniqlo parent Fast Retailing ( FRCOF ) fell 0.8%, chip-making
equipment giant Tokyo Electron ( TOELF ) was down 0.9%, and
silicon wafer maker Shin-Etsu Chemical ( SHECF ) declined 2.3% to
become the biggest drags on the Nikkei.
The benchmark index hit a record high of 42,426.77 on July
11 but has since suffered a string of losses as chip shares
underperformed and the yen sharply appreciated from the 161
range.
In individual stocks, Nidec ( NNDNF ) jumped 6.1% after the
electric motor maker raised its full-year operating profit
forecast on Tuesday.
Mitsubishi Motors ( MMTOF ) slid 7.4% on disappointing
profits, becoming the worst percentage performer.
(Reporting by Brigid Riley; Editing by Eileen Soreng and Varun
H K)