Nikkei slips from three-week high on profit-taking

 

 The Nikkei average retreated from a near three-week high on Wednesday morning, hit by profit-taking after recent big gains, with many investors on the sidelines ahead of key events in coming days.

 

The benchmark Nikkei shed 0.8% at 13,868.91 in midmorning trade, after advancing 4.4% the past two sessions. The index was up 33% this year, but 13% below its May peak.

 

The broader Topix declined 0.4% to 1,144.67.

 

After recent gains, "it's little wonder we are seeing some profit-taking today," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management.

 

"Most investors are opting to wait for some key events, including US jobs data, the Olympics decision and Japan's revised (April-June)GDP figures, and staying on the sidelines at the moment."

 

Tokyo is competing against Istanbul and Madrid to host the 2020 Summer Olympics, and a final decision is expected on Saturday.

 

US payroll data for August is due out on Friday and Japan's revised second quarter GDP growth numbers will come out on Monday.

 

Trade was fairly light on Wednesday, with volume on the Nikkei at 22.5% of its full daily average for the past 90

days.

 

Bucking overall weakness, Canon Inc  gained as much as 4.5% to hit a three-week high after the world's largest digital camera maker said it will buy back up to 1.6% of its own shares, for a maximum of 50 billion yen, between Wednesday and November 1. It was the third-most traded stock by turnover on the main board.

 

Other notable movers include index heavyweight Fast Retailing Co Ltd , which fell 2.8%. A fund manager said Nintendo Co Ltd's  potential inclusion to the benchmark Nikkei weighed on the owner of Uniqlo clothing chain.

 

Although a strong earthquake hit eastern Japan during the morning session, it had only limited effect on the market.

 

On Wednesday, the Bank of Japan's two-day policy meeting began. Analysts say the meeting is attracting little investor attention as no change is expected in the central bank's massive monetary stimulus launched in April.