Nikkei slips on profit-taking after rally to 10-month peak

By Tomo Uetake
SYDNEY, Oct 17 (Reuters) - Japan's stock benchmark Nikkei
pulled back on profit-taking on Thursday, a day after rallying
to more than 10-month highs, as investors waited for signs of
progress on U.S.-China trade talks and Brexit negotiations.
The Nikkei average .N225 edged 0.1% lower to 22,451.86,
holding within a tight range near its highest since early
December hit on Wednesday, while the broader Topix .TOPX
retreated 0.45% to 1,624.16.
Some investors locked in profits after the recent rally and
ahead of Japan's mid-year earnings season, analysts said.
On Wednesday, Wall Street stocks lost ground after soft U.S.
retail data, in a potential sign that manufacturing-led weakness
could be spreading to the broader economy. A solid start to the
earnings season helped counter losses, but that was partly
because markets had already marked down expectations. N/C
As Britain and the European Union scrambled to secure a
last-minute Brexit deal, investors digested mixed headlines on
the likelihood of progress at a EU leaders summit in Brussels
later on Thursday. Japanese chip-related stocks fell, taking their cue from
Wall Street peers as well as Dutch ASML ASML.AS , which dropped
4.5% as investors took profits after the semiconductor equipment
maker announced better-than-expected results on Wednesday.
Tokyo Electron 8035.T dropped 0.6% and Screen Holdings
7735.T slid 1.4%.
Murata Manufacturing 6981.T climbed 1.1% after its chief
executive Tsuneo Murata told the Nikkei business daily that the
electronic components market was bottoming out, stirring hopes
that the industry may be emerging from a year-long slowdown.
Subaru 7270.T fell 0.5% after the carmaker said it would
suspend production at its Gunma factory until Oct. 24 due to
supply disruptions caused by Typhoon Hagibis. Elsewhere, commodity-related sectors fared worse. The
non-ferrous metal and the iron and steel were among the worst
performers in the Tokyo bourse's 33 subsector indexes, down 1.0%
and 0.9%, respectively.

(Editing by Jacqueline Wong)