By Hideyuki Sano
TOKYO, Dec 19 (Reuters) - Japan's Nikkei share average
.N225 ended lower on Thursday as profit-taking set in after a
recent rally to 14-month highs, while technology conglomerate
Hitachi 6501.T spiked higher on its business portfolio
restructuring.
The Nikkei share average .N225 ended 0.29% weaker at
23,864.85, slipping further from Tuesday's 14-month peak of
14,091.12, while the broader Topix .TOPX closed 0.13% lower at
1,736.11.
Markets showed no reaction to the Bank of Japan's decision
to keep its monetary policy on hold. The central bank, as
expected, maintained its upbeat view on the economy, suggesting
policymakers are in no hurry to boost stimulus even as global
risks threaten a fragile recovery. BOJ also gave out some details of a scheme, first announced
in April, to lend ETFs it is holding.
Many investors were eager to take profits at current levels
following gains of almost 20% since a bottom in August on hopes
of a cyclical recovery in the global economy, and lately, on
relief over a first phase Sino-U.S. trade deal.
Data showed foreign investors bought 627.8 billion yen
($5.78 billion) of cash Japanese stocks and futures last week,
their largest buying in eight weeks, data from JPX showed.
"The Nikkei is now trading at 16 times its 12-month forward
earnings so it is now on the expensive side for a normal time
even though you wouldn't call it a bubble," said Nobuhiko
Kuramochi, chief strategist at Mizuho Securities.
Market players were closely monitoring developments
surrounding the impeachment of U.S. President Donald Trump
although few expect it to roil markets. Cyclical shares such as securities brokerages .ISECU.T and
shippers .ISHIP.T were among the main drags, falling 1.8% and
1%, respectively.
On the other hand, Hitachi 6501.T jumped 4.6% to a nearly
two-year high as investors welcomed its business restructuring
drive.
The company said it would sell its listed chemicals unit,
Hitachi Chemical 4271.T as well as its diagnostic imaging
business in deals totalling 673 billion yen ($6.2 billion).
Hitachi Chemical rose 11.8%, while Showa Denko 4004.T ,
which bought the chemical firm, dropped 2.7%.
The buyer of Hitachi's imaging business, Fujifilm Holdings
4901.T , ticked up 2.1%.
Isuzu Motors 7202.T dropped 3.7% after it announced a deal
to buy UD Trucks from Sweden's Volvo AB VOLVb.ST . The deal was
announced after the market close on Wednesday.
Some semi-conductor related shares gained following a jump
in Micron Technologies MU.O after the bell on Wednesday.
The U.S. chipmaker said it expected a recovery in 2020 after
a "cyclical bottom" in the second quarter, and also that it had
received all requested licences to supply some products to its
largest customer, China's Huawei. It helped to lift Advantest 6857.T by 2.6%, Sumco 3436.T
2.4% and Disco 6146.T ended 1.4% firmer.
($1 = 108.6400 yen)
(Editing by Jacqueline Wong and Sherry Jacob-Phillips)