TOKYO, Aug 8 (Reuters) - Japanese shares were under
fresh pressure on Thursday as domestic chip stocks followed a
slide on Wall Street overnight and as more details from the Bank
of Japan (BOJ) pointed to hawkishness and further monetary
tightening.
The Nikkei index was only marginally weaker
following its plunge on Monday and subsequent recovery. It
looked fragile, however, with expectations of a revival in yen
carry trades being unwound after the central bank's release of
minutes of its July meeting.
Some BOJ board members called for the need to keep raising
interest rates, with one saying they should eventually be
increased to at least around 1%, a summary of opinions voiced at
the July 30-31 meeting showed on Thursday.
At the July meeting, the BOJ raised its short-term policy
target to 0.25% from a range of 0% to 0.1%.
Markets had rallied and the yen had slipped on
Wednesday when the BOJ's influential Deputy Governor Shinichi
Uchida said the bank will not hike rates when markets are
unstable.
At 0200 GMT, the Nikkei index was down 1% at 34,725.30. The
broader Topix fell 0.77% to 2,469.98.
All three U.S. main indexes went red on Wednesday, with the
Nasdaq falling 1% as technology shares declined and weak demand
in a 10-year Treasury auction stoked investor jitters in choppy
trade.
"The domestic market will continue to go up and down for a
while as investors continue to look for an appropriate level of
the Nikkei for a while," said Shuutarou Yasuda, a market analyst
at Tokai Tokyo Intelligence Laboratory.
"Today the declines were limited as stocks with robust
earnings outcome rose," Yasuda said.
Chip-testing equipment maker Advantest ( ADTTF ) fell 5.69%,
making it the biggest drag on the Nikkei. Chip-making equipment
maker Tokyo Electron ( TOELF ) fell 1%.
Lasertec ( LSRCF ) surged 22% to provide the biggest support
after the microchip equipment maker said its annual net profit
will likely rise 25%.
Nitori Holdings ( NCLTF ) rose 8% after the home interior
goods retailer said its quarterly recurring profit rose 7.5%.
Fuji Soft was untraded amid glut of buy orders
after local media reported U.S. investment fund KKR & Co ( KKR )
plans to help the software developer go private under a
management buyout worth about 600 billion yen ($4.09 billion).
($1 = 146.6100 yen)