Nikkei Slips on ProfitTaking after Recent Rally

TOKYO, Jan 18 Reuters Japanese stock prices slid on Monday as investors took profits from recent gainers, including semiconductorrelated shares, following the markets rapid ascent to a threedecade high earlier this month.

The Nikkei average dropped 0.97 to end at 28,242.21, slipping further from its 30year peak of 28,979 touched last week. It is still up 2.90 so far this month.

The broader Topix lost 0.60 to 1,845.49.

The markets rally over the last month has been so fast that many people are feeling that theres a bit of overheating here, said Takeo Kamai, head of execution services at CLSA.

Investors booked profits on shares that rallied on hopes of big stimulus spending by the incoming Biden Administration in the United States.

Apart from profittaking, semiconductor shares were also under pressure after a Reuters report that the Trump administration notified Huawei suppliers, including chipmaker Intel, of revoking certain licences to sell to the Chinese company and intended to reject dozens of other applications to supply the telecommunications firm.

Tokyo Electron fell 1.6 while Advantest lost 1.9.

Camera maker Nikon dropped 6.8 after having rallied more than 20 earlier this month.

Department store operators also slumped on fears about longer socialdistancing restrictions as the country struggled to stem the spread of COVID19.

Isetan Mitsukoshi Holdings lost 6.6 and J. Front Retailing fell 5.6.

Nidec bucked the overall trend to gain 4.6 as investors bet on…

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