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Japan Shares Slip as Global Selloff Fuels Caution

TOKYO, Sept 13 (Reuters) - Japanese stocks retreated from three-decade peaks on Monday as investors took profits after a recent rally, with declines in global equities fuelling a cautious mood.

The broad Topix fell 0.19% to 2,087.67 at the lunch break, compared with its Friday close of 2,091.65, the highest since 1990.

The Nikkei share average lost 0.29% to 30,292.84, after marking an almost seven-month closing high of 30,381.84 at the end of last week.

An index of Asia-Pacific shares excluding Japan slid 0.8%, in line with Wall Street’s declines from Friday.

Transport equipment was the worst-performing sector of the Topix, dropping 2.14% after Toyota last week announced extra lost production of 400,000 vehicles over this month and the next.

Japan’s biggest automaker slumped 2.85%, while Honda fell 1.72% and Nissan declined 1.05%.

On the Nikkei, consumer cyclical stocks fell the most, down 1.56%. Uniqlo store operator Fast Retailing was the biggest drag on the index, sliding 1.24%.

SoftBank Group was the second-biggest weight, losing 1.46%.

The day’s falls aside, many investors said the market remained firm, buoyed by optimism about a change in the country’s prime minister and easing COVID-19 infections.

“Expectations among investors that the market will rise in the medium- to long term mean that any dips are being bought, and there won’t be a big correction,” said a market player at a domestic securities firm.

Oil and coal producers made up the top-performing Topix sector, gaining 1.04% on the back of rising oil prices.

Banking was another outperformer, with Shinsei Bank rallying for a second day and rising 13.1% after an unsolicited bid by SBI Holdings on Thursday.

Chipmakers also gained, with Tokyo Electron and Advantest among the biggest supports for the Nikkei in terms of index points, rising 1.08% and 0.99%, respectively.

(Reporting by Tokyo markets team; Editing by Devika Syamnath)

Source: Reuters

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