* Advantest, Tokyo Electron, SoftBank fall after Nvidia’s poor earnings
* Nintendo posts biggest daily drop since July 2016
* Prevision machinery makers drop on China probe report
* Nikkei falls 2.6 pct for the week
By Ayai Tomisawa
TOKYO, Nov 16 (Reuters) - Japan’s Nikkei fell on Friday as a drop in semiconductor-related stocks weighed after U.S. chip designer Nvidia Corp disappointed the market with worse-than-expected earnings, while Nintendo also fell sharply.
Gaming giant Nintendo Co, which uses Nvidia’s Tegra processors for its Switch consoles, stumbled 9.1 percent to post its biggest daily drop since July 2016. Traders said Nvidia’s results raised concerns about Switch’s potentially weak sales.
Nintendo was the most-traded stock by turnover and closed at 31,860, its lowest closing level since May 2017.
The Nikkei share average ended 0.6 percent lower at 21,680.34.
The Nikkei fell 2.6 percent this week, hit mostly by a drop in oil prices and weakness in Apple suppliers and other tech shares.
“It started with Apple, then Nvidia ... Since performances of these companies set the tone for the global tech and chip industries, related Japanese stocks will likely be sluggish for a while,” said Takatoshi Itoshima, a strategist at Pictet Asset Management.
“We not only have U.S.-China trade matters that haven’t been resolved but also other global issues like political uncertainty in the U.K. and worries about Italy. Investors are reluctant to take risks now.”
Chip equipment makers were sold, with Advantest Corp diving 7.6 percent and Tokyo Electron tumbling 4.3 percent.
Daifuku Co, which provides cleanroom automation systems, slumped 4.6 percent after Nvidia forecast disappointing sales for the holiday quarter. It also posted sales that missed expectations for its third quarter.
SoftBank Group Corp, which invests in Nvidia through its Vision Fund, dropped 3.4 percent.
Elsewhere, KYB Corp, a maker of earthquake shock-absorbers, nosedived 8 percent after the company said that an external probe into data falsification required further investigation.
Separately, the Nikkei business daily reported that China’s commerce ministry has begun an investigation into alleged dumping of precision machinery by Fanuc Corp and four other Japanese companies including Okuma and Brother Industries.
Fanuc shed 2 percent, while Okuma and Brother declined 3.6 percent and 1.2 percent, respectively.
The broader Topix dropped 0.6 percent to 1,629.30.
Declining issues outnumbered advancing ones 1,442 to 607. (Reporting by Ayai Tomisawa; Editing by Stephen Coates)