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Nikkei slips from over 30-yr high on profit-taking after rally; Toyota, chip shares jump

TOKYO, Feb 8 (Reuters) - Japan’s stock benchmark snapped a four-session rally on Friday, slipping from a more than 30-year high hit in the previous session, as investors booked profits but gains in Toyota Motor and chip shares capped the losses.

Nikkei share average edged down 0.14% to close at 29,520.07, after hitting a fresh high since August 1990 on Wednesday. The broader Topix inched up 0.04% to end at 1,931.68.

Markets were closed on Thursday for a public holiday.

“Investors are taking a pause as they wait for the market price to consolidate after a recent sharp rise,” said Koichi Kurose, chief strategist at Resona Asset Management.

“The gain in the past few weeks was led by optimism for each individual company, not by the growth for overall industries. Investors are waiting to confirm whether the recovery is true.”

Shipping companies led the Nikkei declines, with Nippon Yusen losing 4.7%, Kawasaki Kisen falling 4.45% and Mitsui OSK Lines falling 4.67%.

Toyota Motor jumped 3.48%, after the automaker said on Wednesday after markets closed that it has up to four-month of stockpile of chips and was not immediately expecting a global chip shortage to hit production. It raised its full-year earnings forecast by a bigger-than-expected 54%.

But its rivals’ shares fell, with Honda Motor falling 3.55% and Nissan Motor losing 3.87%.

Chip-related shares gained after Philadelphia semiconductor index hit record highs overnight, as Bloomberg News reported that U.S. President Joe Biden’s administration had pledged aggressive steps to address chip shortage.

Tokyo Electron and Sumco jumped 3.67%, and Advantest gained 3.86%.

Renesas Electronics rose 3.39% after it posted a 45.6 billion yen ($434.99 million) annual net profit, rebounding a 6.3 billion yen loss year ago.

Reporting by Junko Fujita; Editing by Rashmi Aich

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