TOKYO, Nov 17 (Reuters) - Japanese shares reversed course to
end lower on Wednesday, as concerns over rising costs and a
weaker yen outweighed strength in technology heavyweights
tracking overnight Wall Street gains.
The Nikkei share average fell 0.4% to close at
29,688.33, while the broader Topix lost 0.6% to
Overnight, all the three major indexes on Wall Street closed
higher on the back of upbeat retail sales data.
1 "The yen's weakness against the dollar is good for some
companies but also a negative factor for others. Investors are
now focusing on the latter, especially because material costs
are rising," said Yutaka Miura, a senior technical analyst at
"But declines in Japanese shares are limited thanks to the
solid performance of the U.S. market."
The dollar reached a four-and-a-half-year high against the
yen after better-than-expected U.S. retail data.
Japanese shares also came under pressure after a local media
report said Japan's government and ruling party will consider
debating next year an increase to the country's capital gains
tax as part of efforts to address income disparities.
Staffing agency Recruit Holdings, down 4.61%, was
the biggest drag on both Nikkei and Topix, while automaker
Toyota Motor slipped 0.63% and air conditioning maker
Daikin Industries lost 2.06%.
Technology heavyweights tracked the Nasdaq higher, with
Tokyo Electron rising 3.31%, SoftBank Group
edging up 0.27% and Advantest adding 3.23%.
Oil refiner Idemitsu Kosan advanced 1.15%, after
the industry ministry said it was considering a measure to
mitigate a sharp rise in gasoline prices by providing oil
refiners with subsidies to allow them to cap wholesale prices.
(Editing by Rashmi Aich)