TOKYO, Dec 30 (Reuters) -

Japan's Nikkei share average retreated from the previous

session's five-month high on Monday, the last trading day in

2024, as investors locked in profits on a market set to be up a

fifth for the year.

The Nikkei had fallen 0.75% to 39,979.68 by the

midday break, after opening 0.11% higher. It ended at a

five-month closing high on Friday after a three-session winning

streak.

The index is up 19.5% so far this year, putting it just

behind Pakistan and Taiwan for the year.

The broader Topix was down 0.42% to 2,789.98.

"Investors sold stocks today because they could not find

clear reasons for the Nikkei to cross the 40,000 levels," said

Fumio Matsumoto, chief strategist at Okasan Securities.

"But that does not mean investors are pessimistic about the

market in the coming year. They may just want to avoid risks

during the market close in Japan for the new year, which is

longer than usual."

The Japanese markets will reopen on Jan. 6 after closing for

the new year holidays from the next session.

Chip-testing equipment maker Advantest ( ADTTF ) fell 3.83%

to drag the Nikkei the most.

Nissan Motor ( NSANF ) slipped 5.64% to become the biggest

percentage loser on the Nikkei. Nissan's ( NSANF ) shares surged nearly

40% this month as merger talks between the automaker and peer

Honda Motor ( HMC ) surfaced.

Makino Milling Machine's ( MKMLF ) shares were untraded and

were set to a daily limit of 10,750 yen after a surprise

unsolicited takeover bid by Japanese manufacturing giant Nidec ( NNDNF )

.

Takehiko Masuzawa, trading head at Phillip Securities Japan,

said the Nikkei rose last week as investors bought back stocks

to cover their short positions ahead of the long market holiday.