INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei share average snapped a four-day winning streak in choppy trade on Thursday as investors took profits, with weakness
in inbound-tourism related stocks offsetting gains in oil names and machinery makers.
The Nikkei's early gains evoporated in the
afternoon, closing trade 0.1 per cent lower at 22,764.68
It was the first drop in five days, after reaching 22,949.32 on Wednesday - the highest level since June 13.
"The Nikkei's level of 23,000
has become its immediate resistance, and when the index nears this level, profit-taking occurs," said Yutaka Miura, a senior technical
analyst at Mizuho Securities.
The broader Topix dropped 0.1 per cent to 1,749.59.
Inbound-tourism related stocks such as cosmetics makers
and baby goods makers that were performing strongly recently lost ground
Traders said long-term investors such as pension fund managers were looking to lock-in profits from the recent gainers, while they also
bought back recently-battered machinery stocks hit by China's economic slowdown.
Shiseido Co tumbled 4.8 per cent, Fancl Corp nosedived
9.3 per cent, while Kose Corp stumbled 7.1 per cent
Baby bottle maker Pigeon Corp slumped 5.2 per cent.
Machinery stocks, which were under pressure recently on worries about slowing China
demand, rebounded.
Makino Milling Machine rose 2.6 per cent, Okuma and Yaskawa Electric each added 2.4 per cent.
Oil shares jumped after the
Nikkei business daily reported that Japanese oil distributors are preparing to suspend imports of Iranian crude oil in line with United
States demands, stoking speculation the move would lift procurement costs and bump up oil prices.
Idemitsu Kosan jumped 3.1 per cent, Showa
Shell rallied 3.8 per cent and Cosmo Energy advanced 4.0 per cent
Inpex rose 3.3 per cent.
(Editing by Shri Navaratnam)
