Nikkei can't sustain BoJ-led gains

TOKYO, Japan -- Tokyo shares opened weaker on Wednesday as investors cashed in profits after pushing the market to its biggest percentage gain since April the day before following a surprise easing by the Bank of Japan (BOJ).

The benchmark Nikkei share average was down 2.06 percent or 245.39 points at 11,672.56, while the broader, capital-weighted TOPIX index was down 14.80 points or 1.23 percent at 1,184.06.

"After the positive surprise from the BOJ's action, it's time for the market to calm down," said Nagayuki Yamagishi, assistant manager of investment strategy at Tsubasa Securities.

The Nikkei surged 440.39 points to 11,917.95 on Tuesday, snapping a four-day losing streak that had sent it to a 16-year low in the previous session.

The BOJ announced on Tuesday afternoon that it was raising its target for reserves at private banks' current accounts at the BOJ to six trillion yen ($48.98 billion) from five trillion.

This means letting the banking sector have funds of two trillion yen more than it needs every day, paving the way for more lending and investment by the banks.

Mizuho Holdings, the world's largest bank by assets, came under pressure in the morning after Tuesday's easing helped send it up by its daily limit of 50,000 yen or 11.01 percent.

Mizuho was down 0.99 percent at 499,000 yen, while its peer UFJ Holdings lost 3.5 percent to 635,000.

Broking shares ease after rally

Brokerage shares, another sector which led Tuesday's rally, also eased.

These shares had risen on hopes that their fee revenues would improve if the stock market made a solid recovery, helped by ample liquidity provided by the central bank.

Industry leader Nomura Securities Co Ltd lost 0.9 percent to 2,195 after roaring up more than 10 percent the previous day. But retailers including ailing supermarket operator Mycal Corp kept their momentum as the credit easing is expected to support firms burdened with massive debts, which could in turncurb corporate bankruptcies.

Mycal was up 22.5 percent at 147 yen, adding to a 33.33percent rally the previous day, partly cheered by news that its main creditor bank was mulling extending it about 50 billion yen in extra loans.

Australian shares firmer

In Australia the All Ordinaries index was opened higher with banking and resources stocks both performing well.

The bellwether index was 9.7 points firmer at 3325 in morning business with National Australia Bank 18c firmer at A$ 34.45 and resource leader BHP Billiton 24c stronger at A$9.42.

Media heavyweight News Corp continued its downtrend however, sliding 26c to A$17.59.

In Taipei, the Taiwan Index was bouyant, trading 22.09 points stronger at 4611.69 in morning business.

Reuters contributed to this report.