Nikkei eases from over 30-year high; tech gains cap declines

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.
"The 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 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. That gave an additional boost to Japanese chip shares which
were already in solid demand, Fujito said.
Seiko Epson 6724.T gained 7.32%, while Tokyo Electron
8035.T and Advantest 6857.T gained 3.91% and 2.76%,
respectively.
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. Fast Retailing 9983.T fell 2.85%, even after it said its
first-quarter operating profits were higher than the
pre-pandemic levels. Automakers 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%.