Nikkei falls on profit taking after rising to a 10-month peak

Nikkei fell on profit-taking on Thursday, a day after rising to its highest level in more than a decade as investors awaited signs of progress in US-China trade talks and Brexit negotiations.

The Nikkei was down 0.1 percent at 22,451.86, holding within a narrow range near its highest level since early December on Wednesday, while the broader Topix was down 0.45 percent at 1,624.16.

Analysts said some investors took profits after the recent rally and ahead of Japan’s half-year earnings season.

Chip-related stocks fell, tracking Wall Street and ASML, which fell 4.5 percent, as investors sold the stock for profit after the semiconductor equipment maker reported better-than-expected earnings on Wednesday.

Tokyo Electron fell 0.6 percent and Screen Holdings fell 1.4 percent.

Shares in Murata Manufacturing rose 1.1 percent after Chief Executive Tsuno Murata told the Nikkei daily that the electronic component market was improving, raising hopes the industry might emerge from a year-long slowdown.

Subaru fell 0.5 percent after the carmaker said it would halt production at the Gunma plant until October 24 because of supply disruptions caused by Hurricane Hagebes.