Japan stocks lose momentum on soft earnings, tech sector slide

* Nikkei down 0.45%, slips from 2-1/2-month high
* Lacklustre earnings, pullback by U.S. tech shares weigh

By Shinichi Saoshiro
TOKYO, July 26 (Reuters) - Japan's Nikkei lost traction on
Friday on downbeat earnings both at home and on Wall Street,
erasing some of the previous day's advance which had pushed the
benchmark to a 2-1/2-month peak.
The Nikkei share average .N225 ended the day down 0.45% at
21,658.15. The index had risen to 21,823.07 the previous day,
its highest since May 7.
Technology companies, which had given a big boost to the
broader market over the past week, slid as their U.S. peers fell
overnight after a strong rally.
Industrial robot maker Fanuc Corp 6954.T fell 1.6% and
Tokyo Electron 8035.T lost 1.4%.
"Shares which made large contributions to the Nikkei's
recent gains lost traction after the Nasdaq fell," said Masayuki
Otani, chief market analyst at Securities Japan Inc.
Omron Corp 6645.T was down 7.5% after the maker of digital
medical equipment reported that its June quarter consolidated
operating profit declined 41.2% to 10 billion yen ($92 million),
with business hit by the U.S.-China trade conflict. Nissan Motor Co 7201.T shed 3.2% after the automaker
unveiled its biggest restructuring plan in a decade in the wake
of a collapse in its quarterly profit. Nisshin Seifun Group 2002.T slumped 10.7% as the food
company reported that its June quarter net profit fell 27.2% to
4.43 billion yen with its milling operations in the United
States facing increasing competition. The broader Topix .TOPX shed 0.4% to 1,571.52.
Of Tokyo's 33 sub-indexes, 23 were in negative territory,
led by the non-ferrous metals sector .INFRO.T .
All of Wall Street's three main indexes fell from record
highs on Thursday following a flurry of downbeat quarterly
results from Ford Motor and other companies and after European
Central Bank chief Mario Draghi's comments disappointed
investors hoping for a more dovish stance on monetary policy.
.N
($1 = 108.6300 yen)