TOKYO, Sept 2 (Reuters) - Japanese shares pulled back from
session highs on Thursday, with the broader Topix reversing
course after hitting a five-month peak, as West Japan Railway
fell by a record and dragged down other rail and transport
The Topix slipped 0.21% to 1,976.70 by the midday
break after scaling a five-month high of 1,987.45 in opening
West Japan Railway (JR West) plunged 15.17%, close
to the daily limit, after saying it would sell new shares.
The land transport sub-sector was the worst
performer on the Topix with a drop of 3.82%, while air transport
The Nikkei share average was up 0.09% at 28,476.01.
Earlier in the day, it touched a one-and-a-half month high of
28,626.20 before briefly dipping into negative territory.
Apart from local factors, the U.S. non-farm payrolls data
that is considered crucial to the Federal Reserve's tapering
plan spurred caution among investors.
"Market conditions have improved from a technical
perspective, but the recent rally was so fast that some
investors will want to take profits," said a market participant
with a domestic securities company.
"Buyers are gradually disappearing, with investors waiting
to see the U.S. payrolls number into the weekend."
The Nikkei was supported by heavyweights like chipmakers
Advantest and Tokyo Electron - up 2.18% and
1.28%, respectively - and telecom firms including KDDI,
which rose 1.0%.
Other tech stocks also gained, with Sony Group up
0.87% and Nintendo climbing 1.64%. Mobile game maker Nexon
was the Nikkei's top performer, rallying 3.36%.
But declines across transport sectors were heavy, with the
Nikkei's four worst performing stocks all railways. JR East
slumped 7.14%, JR Central lost 4.33% and Tokyu
Corp slid 4.25%.
Airlines ANA Holdings and Japan Airlines
fell 1.99% and 0.96%, respectively.
Automakers also declined, with Nissan slumping
2.85%, Honda declining 0.98% and Toyota
(Reporting by Tokyo markets team; Editing by Subhranshu Sahu)