Tokyo Nikkei 225 down 0.16% at 40,063 points (Il Sole 24 Ore Radiocor) - Tokyo , 19 Jul - Japanese shares closed slightly lower, dropping for a third day amid weak Asian markets.

The Nikkei index closed down 0.16% at 40,063 points, further retreating from near all-time highs.

In Tokyo stock market dealings technology shares extended yesterday's sharp drop as chipmakers tracked their US peers lower on profit taking after a recent rally, with expectations of US interest rate cuts sparking a pivot into economically sensitive sectors.

Investors digested softer-than-expected consumer price index figures that raised questions over whether the Bank of Japan will hike interest rates soon.

Japan's consumer price index in June rose a monthly 0.1%, slowing from the 0.4% increase seen in May, and grew at an unchanged rate of 2.8% year on year, according to data released by the Statistical Bureau of Japan.

Excluding fresh food, core CPI rose an unchanged 0.3% month on month and 2.6% year on year, from 2.5% in May. Excluding fresh food and energy it was up an unchanged 0.1% month on month and 2.2% year on year from 2.1% the earlier month.

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(RADIOCOR) 19-07-24 08:40:27 (0152) 5 NNNN