Nikkei falters on profit-taking

Mizuho Holdings and other big Japanese banks opened weaker Friday

TOKYO, Japan -- Tokyo stocks opened weaker on Friday, succumbing to profit-taking in several high-tech shares.

The benchmark Nikkei 225 share average was down 127.15 points or 1 percent at 12,272.05 by mid-morning. The broader, capital-weighted TOPIX index lost 10.59 points or 0.8 percent to 1,224.30.

Tokyo failed to respond to Wall Street, where the Dow Jones closed 41 points up and Nasdaq gained 19 pointss after upbeat comments on personal computer demand by chip leader Intel.

"I guess we were over-excited yesterday," said Kunihiro Hatae, general manager in Tokai Tokyo Securities' equities trading division.

"Although the impact of Intel is huge on the whole high-tech sector, just one company becoming bullish will not be enough for the sector to bottom out," he said.

Australia and Korea also weaker

Elsewhere in the region, Australia and Korea opened softer, but Taiwan held onto its gains to be 35 points higher at 4525.53.

In Tokyo, the Nikkei on Monday hit a 16-year closing low of 11,579.27 before making comeback later in the week.

It ended Thursday more than 3.5 percent higher at 12,399.20, its highest close in three weeks, led by steep gains in tech issues including Toshiba Corp.

That came after a report by Merrill Lynch on Wednesday, which said the worst may be over for global semiconductor firms.

Toshiba, Japan's top chip maker, gave up 0.78 percent to 640 yen Friday morning, after rising 7.86 percent in heavy trade on Thursday.

Banking shares were mostly lower with some investors locking in profits after their rally earlier this week, and some others disappointed by the slow pace of cost-cutting plans unveiled late on Thursday.

Mizuho, other banks, lower

Mizuho Holdings Inc, the world's biggest bank by assets, fell 2.66 percent to 513,000 yen.

The bank said on Thursday it would take 800 billion yen ($6.43 billion) in loan-loss charges for the year to next March, up 60 percent from its original estimate.

Reuters contributed to this report.