* Advantest, Tokyo Electron, SoftBank fall after Nvidia’s poor earnings
* Prevision machinery makers drop after report China has begun investigation
* Nikkei has dropped 2.2 percent 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.’s Nvidia disappointed the market with worse-than-expected earnings.
The Nikkei share average opened slightly higher but was down 0.3 percent at 21,733.17 points by midmorning.
The Nikkei has dropped 2.2 percent so far 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 6.5 percent and Tokyo Electron tumbling 4.5 percent.
Daifuku Co, which provides cleanroom automation systems, slumped 5 percent after chip designer Nvidia Corp 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, dropped 3.1 percent.
Elsewhere, KYB Corp, a maker of earthquake shock absorbers, nosedived 10 percent after the company said that an external probe into data falsification in earthquake shock absorbers showed a need for further investigation.
Separately, the Nikkei business daily reported that China’s Ministry of Commerce 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 1.1 percent, while Okuma and Brother declined 2.7 percent and 1.6 percent, respectively.
The broader Topix dropped 0.6 percent to 1,628.44.
Declining issues outnumbered advancing ones 1,567 to 461. (Editing by Kim Coghill)