Nikkei Eases from over 30Year High; Tech Gains Cap Declines

TOKYO, Jan 15 Reuters Japans benchmark Nikkei stock average snapped a fivesession rally on Friday, slipping from a more than 30year high hit in the previous session, while losses were capped by tech shares after Taiwanese chipmaker TSMC posted its bestever quarterly profit.

The Nikkei closed down 0.62 to 28,519.18, after hitting a fresh high since August 1990 on Thursday. But it was set for its third straight weekly gains, up 1.35 for the week.

The broader Topix fell 0.89 to 1,856.61.

AsiaPacific shares outside Japan also fell in afternoon trade, reversing its course toward record highs after U.S. Presidentelect Joe Biden proposed a 1.9 trillion coronavirus stimulus plan to jump start the worlds largest economy.

The Nikkei started slowing down at the end of yesterdays session as investors felt the overheat in the market, said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley Securities.

But this is a very limited decline. The market is supported by solid demand for chip shares on the back of robust earnings from TSMC.

Taiwan Semiconductor Manufacturing Co Ltd TSMC posted its bestever quarterly profit on Thursday and raised revenue and capital spending estimates, pushing the Philadelphia semiconductor index to a record high.

That gave an additional boost to Japanese chip shares which were already in solid demand, Fujito said.

Seiko Epson gained 7.32, while Tokyo Electron and Advantest gained 3.91 and 2.76, respectively.

Canon was the…

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