Nikkei slips as chip-related stocks weigh; Japan Display tanks

* JDI nosedives after it says to cut jobs, downsize mobile
ops
* Tokyo Electron, Advantest tumble
* Banks weak on prospects for U.S. rate cut
* Eyes on geopolitical risk amid extradition protests in
Hong Kong

By Ayai Tomisawa
TOKYO, June 13 (Reuters) - Japan's Nikkei fell on Thursday,
with chip-related shares battered after their U.S. counterparts
tumbled while the U.S.-China trade dispute and geopolitical
risks dampened sentiment.
The Nikkei share average .N225 dropped 0.5% to 21,032.00.
Chip-related stocks lost ground, with Tokyo Electron
8035.T plummeting 4.2% and Advantest Corp 6857.T sinking 5%,
after the Philadelphia Semiconductor index .SOX dropped 2.3%,
as Micron Technology Inc MU.O and Applied Materials Inc
AMAT.O both slumped more than 5%.
"Japanese tech shares took a hit as global investors are
likely unloading shares in the overall tech sector," said Yutaka
Miura, a senior technical analyst at Mizuho Securities.
Concerns over trade continued to weigh on sentiment, after
U.S. President Donald Trump on Tuesday said he was holding up a
deal with China and had no interest in moving ahead unless
Beijing agrees to four or five major points. Trading volume was thin as investors awaited more cues for
trade at the G20 summit this month, while they remained on the
sidelines before the June settlement of Japanese stock futures
and options on Friday.
Investors were keeping a close eye on violent protests in
Hong Kong over an extradition bill that would allow people to be
sent to mainland China for trial.
"A geopolitical risk has emerged amid Hong Kong extradition
protests," said Masayuki Doshida, a senior market analyst at
Rakuten Securities.
"Investors might not have positioned themselves based on
this yet, but depending on developments, it could be a reason to
dent the market in the future."
Hong Kong authorities were shutting government offices in
the city's financial district for the rest of the week after a
day of violence over the bill. Financial stocks, which benefit from higher rates,
languished on growing views the Federal Reserve will cut
interest rates. Mitsubishi UFJ Financial Group 8306.T fell
1.3% and Sumitomo Mitsui Financial Group 8316.T dropped 1%.
Japan Display Inc 6740.T plunged 12% after the struggling
smartphone screen maker said it would downsize its mobile
business and cut 1,200 jobs. The broader Topix .TOPX fell 0.8% to 1,541.50, with all
but one of its 33 subsectors in the red.

(Editing by Jacqueline Wong)