Nikkei slips on weakness in chip-related stocks

* 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
morning, with chip-related shares battered after their U.S.
counterparts tumbled while concerns over U.S.-China trade
frictions kept activity in check.
The Nikkei share average .N225 dropped 0.8% to 20,958.25
at the midday break.
Chip-related stocks lost ground, with Tokyo Electron
8035.T and Advantest Corp 6857.T down more than 4%, after
the Philadelphia Semiconductor index .SOX dropped 2.3%, while
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. Analysts said trading volume would likely be thin as
investors await more cues for trade at the G20 summit this
month, while they are also 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 2%
and Sumitomo Mitsui Financial Group 8316.T dropped 1.3%.
Japan Display Inc 6740.T nosedived 12% after the
struggling smartphone screen maker said it would downsize its
mobile business and cut 1,200 jobs. The broader Topix .TOPX fell 1.2% to 1,536.10, with all of
its 33 subsectors in the red.

(Editing by Jacqueline Wong)