Nikkei falls in choppy trade; chip-related stocks underperform

Japan's Nikkei share average fell on Monday morning in choppy trade after a slightly stronger yen sapped investors' risk appetite, sending stocks such as chip-related firms lower.

The Nikkei dropped 0.3 per cent to 22,474.98 by the midday break, after opening 0.5 per cent higher.

Semiconductor equipment makers underperformed, with

Tokyo Electron Ltd shedding 1.8 per cent and Advantest Corp declining 1.7 per cent. Silicon wafer maker Sumco Corp fell 3.5 per cent.

Traders said the dollar's weakening against the yen is souring the mood. The dollar fell 0.2 per cent to trade at 111.39 yen.

Non-ferrous metal stocks also underperformed, with Mitsubishi Materials Corp shedding 1.3 per cent and SumitomoMetal Mining declining 1.1 per cent.

Bucking the weakness, Nintendo Co soared 2.2 per cent on hopes that Nintendo Switch games console would post strong sales during the US holiday season.

The broader Topix shed 0.1 per cent to 1,778.94.