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Tokyo stocks dip on profit-taking in large caps after recent rally

Published 20/12/2019, 08:01
© Reuters.  Tokyo stocks dip on profit-taking in large caps after recent rally
USD/JPY
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JP225
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TOPX
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7201
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7261
-
7269
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6502
-
6758
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6954
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9984
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6861
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7741
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1808
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7203
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1906
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6256
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By Hideyuki Sano

TOKYO, Dec 20 (Reuters) - Japan's Nikkei share average

dipped on Friday as investors took profits, especially in large

caps, and awaited more clarity on a U.S.-China trade deal

announced last week.

The Nikkei share average .N225 fell 0.20% to 23,816.63,

while the broader Topix .TOPX lost 0.18% to 1,733.07, with the

Topix core 30 of the biggest firms falling 0.56%. For the week,

the Nikkei fell about 0.9% after three weeks of gains.

Investors chose to book profits ahead of the year-end

holiday after Japanese shares hit a 14-month high earlier this

week on news of the tentative trade deal being finalised between

Washington and Beijing.

Still, with a generally optimistic mood in the market

underpinning many small caps, advancers outnumbered decliners by

a ratio of about 5 to 4. Turnover jumped to 2.3 trillion yen in

the main board, about 10% above the long-term average.

"We expect the market to continue to rally next year as we

expect corporate sales to pick up," said Hiroshi Watanabe, an

economist at Sony Financial Holdings.

"So far, the Nikkei's rally has been driven by a rise in

multiples. Next year, it will be led more by earnings growth."

SoftBank Group Corp 9984.T , which has surged over 10% in

the past month, gave up 0.6%.

Sony Corp 6758.T , one of the strongest performers over the

past month, dropped 1.7%.

Among big technology names, robot maker Fanuc 6954.T lost

2.2%, while Keyence 6861.T shed 0.6%.

Carmakers were hit by the dollar's retreat overnight from a

near six-month high against the yen JPY= . Toyota Motor Corp

7203.T and Nissan Motor 7201.T shed 1.1% each, while Suzuki

Motor Corp 7269.T and Mazda Motor Corp 7261.T both dropped

0.8%.

Nuflare Technology Inc 6256.T dropped 9.0% after Toshiba

Corp 6502.T said it had no intention of accepting Hoya Corp's

7741.T sweeter bid for Nuflare or raising its own bid.

Toshiba and Hoya have been competing for the ownership of

Nuflare, which is currently owned 52.4% by Toshiba. Toshiba dropped 0.1%, while Hoya ended up 0.1%.

Homebuilder Hosoda Corp 1906.T soared 17.1% after

condominium builder Haseko Corp 1808.T announced a tender

offer on Hosoda. Haseko ended flat.

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