Japanese shares fall on profit booking, checking U.S. rates

TOKYO, April 6 (Reuters) - Japanese shares gave up early
gains and slipped on Tuesday, as investors booked profits from
recent rallies and treaded with caution as they await clues over
the direction of U.S. interest rates.
Nikkei share average .N225 lost 0.81% to 29,844.81 by 0208
GMT, after hitting the 30,000 mark for the first time in more
than two weeks on Monday. The broader Topix .TOPX fell 0.74%
to 1,968.80
"Investors who bought stocks when the Nikkei hit the 30,000
mark earlier this year were disappointed when the index fell
well below that level. Those who do not want to repeat that risk
were selling the shares today," said Takatoshi Itoshima,
strategist at Pictet Asset Management.
"The market fundamental is strong. But ultimately the
stimulus packages in the U.S. and the direction of the long term
interest rates could determine the move of the Japanese market."
U.S. Treasury yields edged lower overnight, as investors
paused recent selling of government bonds, though the uptrend in
rates remained intact following Friday's blockbuster jobs
report. Index heavyweights Fast Retailing 9983.T , an operator of
Uniqlo brand clothing stores, fell 1.44% and Tokyo Electron
8035.T lost 1.62%.
Mizuho Financial Group 8411.T dropped 2.43% after the bank
said it would revise its IT contingency plans by the end of
June, as it suffered four systems glitches during two weeks from
February to March. Mitsubishi UFJ Financial Group 8306.T lost 2.28% and
Sumitomo Mitsui Financial Group 8316.T fell 1.85%.
Tracking a 4% decline in oil prices, oil and gas explorers
Inpex 1605.T lost 2.45% and Japan Petroleum Exploration
1662.T slipped 1.77%.
The stocks that gained the most among the top 30 core Topix
names were Hitachi 6501.T , up 1.12 %, followed by Kao
4452.T .
The underperformers among the Topix 30 were Takeda
Pharmaceutical 4502.T , down 2.51%, followed by Mizuho
Financial Group.
There were 61 advancers on the Nikkei index against 160
decliners.