Japanese shares drop on profit-taking ahead of year-end holidays

TOKYO, Dec 30 (Reuters) - Japanese stocks dropped in early
trade on Monday, the last trading day of the year, as investors
booked profits ahead of New Year holidays, though the Nikkei
share average .N225 was on course to log an annual gain after
the previous year's loss.
The Nikkei share average .N225 fell 0.49% to 23,721.91,
while the broader Topix .TOPX lost 0.44% to 1,725.58.
On the year, the Nikkei was up 18.5% after a 12% drop in the
previous year, while the Topix was 16.5% higher after shedding
nearly 18% in 2018.
As Japanese financial markets will be closed from Tuesday
through Friday to reopen next Monday, market players were eager
to close their positions.
A broad range of shares fell, with all of the Tokyo Stock
Exchange's 33 industry subindexes in the negative territory.
Some said market sentiment was also not helped by rising
political tensions in North East Asia and air strikes in the
Middle East.
North Korean leader Kim Jong Un called at a ruling party
meeting for "positive and offensive measures" to ensure security
ahead of a year-end deadline he has set for denuclearisation
talks with the United States. The U.S. military carried out air strikes in Iraq and Syria
on Sunday against Iran-backed militia group in response to the
killing of a U.S. civilian contractor in a rocket attack on an
Iraqi military base. Shares of Ishikawa Seisakusho 6208.T , a tiny manufacturer
of defence goods, jumped 5.8%.
Elsewhere, Adastria 2685.T dropped 6.6% after the casual
clothing shop operator's quarterly earnings and profit guidance
for the year ending in February fell short of market
expectations.
Parco 8251.T rose 10% to edge near the tender price
offered by J. Front Retailing 3086.T , which has announced a
plan to wholly own the company last week.
Leopalace21 8848.T climbed 2.6% after activist investors
requested the scandal-tainted apartment builder sack all of its
10 board members.

(Editing by Subhranshu Sahu)