Japanese stocks off 3-1/2-month peak as firmer yen weighs on market

SYDNEY, June 9 (Reuters) - Japanese shares ended lower on
Tuesday, slipping from a 3-1/2-month high hit in the previous
session, as a firmer yen weighed on the market, with automakers
and chip-related companies leading the decline.
The benchmark Nikkei average .N225 dipped 0.4% to
23,091.03. It had hit its highest closing level since Feb. 21 on
Monday.
This was despite an overnight rally on Wall Street that took
the Nasdaq Composite .IXIC to a record high and the S&P 500
.SPX in positive territory for the year as expectations for a
swift economic recovery from a coronavirus-driven slump
increased. .N
"As some technical signs suggested the market is overheated,
it's no surprise if we feel top heavy in the short term," said
Takeo Kamai, head of executions services at CLSA in Tokyo.
The broader Topix .TOPX eased 0.1% to 1,628.43, also off
its highest closing since Feb. 21, with more than two-thirds of
the 33 sector sub-indexes on the Tokyo exchange finishing lower.
Highly cyclical iron and steel .ISTEL.T , sea transport
.ISHIP.T and non-ferrous metals .INFRO.T were the worst
three performing sectors on the main bourse.
In the currency market, the safe-haven yen rebounded from
Friday's 2-1/2-month low versus the U.S. dollar, with the
dollar/yen JPY=EBS trading at 107.915 yen, a level unseen for
a week.
As a firmer yen hurts Japanese manufacturers' profits made
abroad when repatriated, shares of export-oriented automakers
came under pressure, with Nissan Motor 7201.T tumbling 4.8%
and Mazda Motor 7261.T falling 3.1%.
Taking a weak lead from their Wall Street peers .SOX ,
chip-making gear maker Tokyo Electron 8035.T slid 2.7%, while
test device maker Advantest 6857.T shed 3.9%.
Bucking the overall market's weakness, home improvement
store operator Lixil Viva 3564.T , a subsidiary of Lixil Group ,
advanced 3.2% after the Nikkei business daily reported Lixil
Group plans to sell its majority stake in Lixil Viva to its
domestic peer, Arcland Sakamoto .
Shares of Arcland Sakamoto 9842.T soared 15.1%, while
Lixil Group 5938.T ended flat.