TOKYO, Nov 17 (Reuters) - Japan's Nikkei share average
fell in choppy trade on Monday, as tourism-related stocks
tumbled amid an escalating diplomatic spat with China over
Taiwan.
The Nikkei was down 0.5% at 50,135.31, as of 0218
GMT, after rising as much as 0.4% earlier in the session. The
broader Topix fell 0.67% to 3,337.38.
China on Friday cautioned its citizens against visiting
Japan in the spat sparked by comments from Japanese Prime
Minister Sanae Takaichi.
Takaichi said this month that a Chinese attack on Taiwan
could amount to a "survival-threatening situation", potentially
triggering a military response from Tokyo.
Shares of department stores fell, with Isetan Mitsukoshi
Holdings ( IMHDF ) down 10.87%. Takashimaya ( TKSHF ) lost 6.52%,
while cosmetics maker Shiseido ( SSDOF ) fell 9.5%. Uniqlo-brand
owner Fast Retailing ( FRCOF ) lost 5.5% to become the biggest
drag on the Nikkei.
"Market reaction to those stocks was a little bit too much.
Investors might have priced in all the bad news regarding the
relationship between China and Japan," said Shoichi Arisawa,
general manager of the investment research department at
IwaiCosmo Securities.
"I do not think the sell-off of those stocks would
continue."
Lending some support to the market, technology stocks rose
as investors scooped up chip and artificial intelligence-related
shares on dip.
SoftBank Group gained 3% to become the biggest
support for the Nikkei. Fujikura ( FKURF ), a maker of fibre
optic used at AI data centres, rose 2%, while Mitsui Kinzoku ( XZJCF )
, a maker of data centre materials, jumped 7%.
Sumitomo Mitsui Financial Group ( SMFG ) rose 3.8% after the
country's second-largest banking group posted a 57% rise in
July-September quarter net profit on Friday.
Mitsubishi UFJ Financial Group ( MUFG ) and Mizuho Financial
Group ( MFG ) slipped 1.5% and 0.32%, respectively, even as
they posted higher quarterly net profits.
(Reporting by Junko Fujita; Editing by Subhranshu Sahu)