TOKYO, Oct 10 (Reuters) - Japan's Nikkei share average
fell on Friday as investors booked profits ahead of a three-day
weekend from the fast-paced rally, while Uniqlo brand owner Fast
Retailing ( FRCOF ) jumped after posting a record profit.
As of 0221 GMT, the Nikkei was down 0.9% at
48,117.92. The broader Topix slipped 1.62% to 3,205.05.
"It was natural that investors wanted to book profits after
the sharp rally," said Shuutarou Yasuda, a market analyst at
Tokai Tokyo Intelligence Laboratory.
The Nikkei surged 5% so far this week, after Sanae Takaichi
was placed on course to become the next prime minister, boosting
expectations of renewed fiscal stimulus and loose monetary
policy.
"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," Yasuda said.
Technology investor SoftBank Group lost 3.74% to
become the biggest drag on the Nikkei. Chip-related shares fell,
with Advantest ( ADTTF ) and Tokyo Electron ( TOELF ) slipping 2%
and 1.5%, respectively.
The Nikkei rose by around 6,000 points from the low on
September 3 to the previous session. Of which, 70% of the gains
came from the rally of those three firms, said Kazuaki Shimada,
chief strategist at IwaiCosmo Securities.
Fast Retailing ( FRCOF ) jumped 6.3% to become the biggest
support for the Nikkei, after it posted a record high profit for
the year ended August, and forecast a fifth-straight year of
record profit in fiscal 2026 on its aggressive expansion in
North America and Europe.
All but one of the Tokyo Stock Exchange's 33 industry
sub-indexes fell, with the brokerage index losing
3.8% to become the worst performer.
The retail sector edged up 0.59%.