(Updates with closing prices)
By Junko Fujita
TOKYO, Oct 10 (Reuters) - Japan's Nikkei fell on Friday
on profit-booking ahead of a long weekend, with reports after
the close that the Komeito party would leave the ruling
coalition, renewing political uncertainty.
The Nikkei fell 1.01% to 48,088.8, but still notched
its best week in more than a year, rising 5%, helped by a sharp
jump in Uniqlo brand owner Fast Retailing ( FRCOF ).
The broader Topix slipped 1.85% to 3,197,59.
After the market closed, Japan's local media reported that
the Komeito party will leave the ruling coalition with the LDP,
casting uncertainty over the LDP's ability to govern as Sanae
Takaichi takes over the party.
The Nikkei jumped this week, after Takaichi won the party's
leadership election and placed on course to become the next
prime minister, boosting expectations of renewed fiscal stimulus
and loose monetary policy.
"It was natural that investors wanted to book profits after
the sharp rally," Tokai Tokyo Intelligence Laboratory market
analyst Shuutarou Yasuda said.
"But worries that whether Takaichi can successfully secure
coalition partners are growing. The stocks rose on expectations
of Takaichi's fiscal spending, but if the Liberal Democratic
Party (LDP) can not form a solid coalition, Takaichi's plans may
not go ahead."
Technology investor SoftBank Group lost 3.14%.
Chip-related shares fell, with Advantest ( ADTTF ) and Tokyo
Electron ( TOELF ) slipping 0.94% and 1.41%, respectively.
The Nikkei rose by around 6,000 points from the low hit on
September 3 till Thursday. Of this, 70% of the gains came from
the rally in these three firms, said Kazuaki Shimada, chief
strategist at IwaiCosmo Securities.
Fast Retailing ( FRCOF ) jumped 6.65% to become the biggest support
for the Nikkei, after it posted a record high annual profit.
All but one of the Tokyo Stock Exchange's 33 industry
sub-indexes fell, with the brokerage index losing 5%
to become the worst performer.