Nikkei gives up early gains as chip-related shares retreat after ASML earnings

By Junko Fujita

TOKYO, Oct 14 (Reuters) - Japan's Nikkei share average gave up early gains to end nearly flat on Wednesday, as chip-related shares lost ground after Dutch chip tool maker ASML reported earnings.

The Nikkei .N225 closed 0.05% lower at 67,744.29 after rising as much as 0.93% earlier in the session. The broader Topix .TOPX edged 0.34% lower to 4,096.78.

"The Nikkei reversed gains as markets saw ASML shares falling on proprietary trading systems after earnings," said Kazuaki Shimada, chief strategist at IwaiCosmo Securities.

ASML ASML.AS shares were indicated lower on Tradegate, an alternative trading platform, even after the world's largest supplier of chipmaking equipment forecast fourth-quarter sales above analysts' expectations.

ASML earnings were not bad, so the market may reassess by the next session, said Shimada.

In Japan, chip-making equipment maker Tokyo Electron 8035.T reversed gains to end 2.73% lower. Chip-testing equipment maker Advantest 6857.T also gave up gains and ended 0.05% lower.

Fibre optic cable maker Fujikura 5803.T rose 2.56%.

Taiyo Yuden 6976.T, a leading maker of multi-layer ceramic capacitors used to regulate power in AI servers, rose 3.59% to become the top percentage gainer on the Nikkei.

Banks slipped, weighing on the Topix the most. Mitsubishi UFJ Financial Group 8306.T fell 1.94%, while Mizuho Financial Group 8411.T and Sumitomo Mitsui Financial Group 8316.T slipped 2.87% and 1.85%, respectively.

Overnight, major US investment bank stocks fell, with Citigroup C.N dipping 5.6% and Goldman Sachs GS.N losing 0.2% after both beat profit estimates. .N

Out of more than 1,500 stocks trading on the Tokyo Stock Exchange's prime market, 57% fell, 38% rose and 3% traded flat.