(Recasts paragraph 1, adds comments, updates stock prices)
By Junko Fujita
TOKYO, Aug 14 (Reuters) - Japan's Nikkei share average
slipped on Thursday, pulling back from the record high reached
in the previous session, amid concerns over the Bank of Japan's
(BOJ) potential policy shift and a stronger yen.
The Nikkei fell 1.3% to 42,764.04 as of 0137
GMT.
The index crossed the key 43,000 metric for the first time
on Wednesday, marking six consecutive sessions of gains. That
took its winning run to 9% since the drop on August 4.
"Investors sold stocks as they locked in profits on growing
concerns about the market overheating," said Shuutarou Yasuda, a
market analyst at Tokai Tokyo Intelligence Laboratory.
"Also, the market became cautious that the Bank of Japan may
raise interest rates soon after (U.S. Treasury Secretary Scott)
Bessent interfered with Japan's central bank's policy," he said.
In an interview with Bloomberg Television, Bessent said the
BOJ is going to hike interest rates as it is "behind the curve"
in handling monetary policy.
The comments came as bets that the Federal Reserve will
resume rate cuts next month sent the U.S. dollar to a three-week
low.
A stronger yen typically weighs on exporter shares by
reducing the value of overseas earnings when converted back into
Japanese currency.
The broader Topix lost 1% to 3,060.33 and was set to
snap a six-session winning streak.
Shares of chip-testing equipment maker Advantest ( ADTTF )
lost 0.3% and chip-making equipment maker Tokyo Electron ( TOELF )
fell 1.1%.
Automakers declined, with Toyota Motor ( TM ) and Honda
Motor ( HMC ) losing 1.77% and 0.55%, respectively.
Bucking the sombre mood, technology investor SoftBank Group
rose 2.82%.