TOKYO, Jan 18 (Reuters) - Japanese stock prices slid on
Monday as investors took profits from recent gainers such as
semiconductor-related shares following the market's rapid ascent
to a three-decade high earlier this month.
The Nikkei average .N225 dropped 0.83% to 28,282.74,
slipping further from its 30-year peak of 28,979 touched last
week. Still, it was up 3.06% so far this month. The broader
Topix .TOPX lost 0.49% to 1,847.47.
"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.
Semi-conductor shares succumbed to profit-taking also after
a Reuters report that the Trump administration notified Huawei
suppliers, including chipmaker Intel, that it is revoking
certain licences to sell to the Chinese company and intends to
reject dozens of other applications to supply the
telecommunications firm. Tokyo Electron 8035.T fell 1.1% while Advantest 6857.T
lost 1.8% and Screen Holdings 7735.T shed 0.4%.
Camera maker Nikon 7731.T dropped 6.1% 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 5.5% and J. Front
Retailing 3086.T fell 3.9%.
Nidec 6594.T bucked the overall trend to gain 4.4% as
investors bet on its strength in motors for electric vehicles.
The market showed a muted response to a raft of Chinese
economic data.