TOKYO, Jan 15 (Reuters) - Japan's benchmark Nikkei stock average snapped a five-session rally on Friday, slipping from a more than 30-year high hit in the previous session, while losses were capped by tech shares after Taiwanese chipmaker TSMC posted its best-ever quarterly profit.
The Nikkei .N225 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 .TOPX fell 0.89% to 1,856.61.
Asia-Pacific shares outside Japan also fell in afternoon trade, reversing its course toward record highs after U.S. President-elect Joe Biden proposed a $1.9 trillion coronavirus stimulus plan to jump start the world's largest economy. Nikkei started slowing down at the end of yesterday's session as investors felt the overheat in the market," said Norihiro Fujito, chief investment strategist, Mitsubishi UFJ Morgan Stanley (NYSE: MS ) 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) 2330.TW posted its best-ever quarterly profit on Thursday and raised revenue and capital spending estimates, pushing the Philadelphia semiconductor index .SOX to a record high. gave an additional boost to Japanese chip shares which were already in solid demand, Fujito said.
Canon 7751.T was the top gainer in Nikkei, jumping 8.39%, after the company raised its profit forecast for the year just ended to well above analysts' estimates. Retailing 9983.T fell 2.85%, even after it said its first-quarter operating profits were higher than the pre-pandemic levels. also slipped, with Subaru 7270. shedding 2.11% after it became the latest car maker to cut production due to a global shortage of semiconductors. Toyota Motor 7203.T fell 1.65%, while Honda Motor 7267.T declined 2.88%.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.