Nikkei slips on profit-taking after recent rally; semi-conductors weigh

TOKYO, Jan 18 (Reuters) - Japanese stock prices slid on
Monday as investors took profits from recent gainers, including
semiconductor-related shares, following the market's rapid
ascent to a three-decade high earlier this month.
The Nikkei average .N225 dropped 0.97% to end at
28,242.21, slipping further from its 30-year peak of 28,979
touched last week. It is still up 2.90% so far this month.
The broader Topix .TOPX lost 0.60% to 1,845.49.
"The market's rally over the last month has been so fast
that many people are feeling that there's a bit of over-heating
here," said Takeo Kamai, head of execution services at CLSA.
Investors booked profits on shares that rallied on hopes of
big stimulus spending by the incoming Biden Administration in
the United States.
Apart from profit-taking, semi-conductor shares were also
under pressure after a Reuters report that the Trump
administration notified Huawei suppliers, including chipmaker
Intel, of revoking certain licences to sell to the Chinese
company and intended to reject dozens of other applications to
supply the telecommunications firm. Tokyo Electron 8035.T fell 1.6% while Advantest 6857.T
lost 1.9%.
Camera maker Nikon 7731.T dropped 6.8% after having
rallied more than 20% earlier this month.
Department store operators also slumped on fears about
longer social-distancing restrictions as the country struggled
to stem the spread of COVID-19.
Isetan Mitsukoshi Holdings 3099.T lost 6.6% and J. Front
Retailing 3086.T fell 5.6%.
Nidec 6594.T bucked the overall trend to gain 4.6% as
investors bet on its strength in motors for electric vehicles.
The index of Mothers start-up shares .MTHR rose 1.56%,
The market showed a muted response to a raft of Chinese
economic data. Trade was also slow due to a U.S. market holiday, with
turnover missing the two trillion yen mark for the first time in
two weeks.