TOKYO, Dec 19 (Reuters) - Japan's Nikkei share average
.n225 dipped on Thursday as profit-taking set in after a
recent rally to 14-month highs while Hitachi 6501.T spiked
higher on its business portfolio restructuring.
The Nikkei share average .N225 fell 0.32% to 23,858.75,
slipping further from Tuesday's 14-month peak of 14,091.12,
while the broader Topix .TOPX lost 0.25% to 1,734.13.
Many investors were eager to take profits at current levels
following gains of almost 20% since a bottom in August on hopes
of a cyclical recovery in the global economy, and lately, on
relief over a first phase Sino-U.S. trade deal.
"The Nikkei is now trading at 16 times its 12-month forward
earnings so it is now on the expensive side for a normal time
even though you wouldn't call it a bubble," said Nobuhiko
Kuramochi, chief strategist at Mizuho Securities.
Meanwhile, few expect the impeachment of U.S. President
Donald Trump to roil markets but are closely monitoring
developments. Cyclical shares such as securities brokerages .ISECU.T and
shippers .ISHIP.T were among the main drag, falling 1.6% and
1.3% respectively.
On the other hand, Hitachi 6501.T jumped 4.1% to a near
two-year high as investors welcomed its business restructuring
drive.
The company said it would sell its listed chemicals unit,
Hitachi Chemical 4271.T as well as its diagnostic imaging
business in deals totalling 673 billion yen ($6.2 billion).
Hitachi Chemical rose 11.6% while Showa Denko 4004.T ,
which bought the chemical firm, dropped 1.1%.
The buyer of Hitachi's imaging business, Fujifilm Holdings
4901.T , ticked up 0.9%.
Isuzu Motors 7202.T dropped 3.9% after it announced a deal
to buy UD Trucks from Sweden's Volvo AB VOLVb.ST . The deal was
announced after the market close on Wednesday.
Some semi-conductor related shares gained following a jump
in Micron Technologies MU.O after the bell on Wednesday.
The U.S. chipmaker said it expected a recovery in 2020 after
a "cyclical bottom" in the second quarter, and also that it had
received all requested licences to supply some products to its
largest customer, China's Huawei. That helped to lift Sumco 3436.T 3.6%, Advantest 6857.T
2.4% and Disco 6146.T 2.2%.
(Editing by Jacqueline Wong)