Japan's Nikkei average inched lower today as caution set in after nine straight days of gains and shares that had led the strong run-up such as Advantest fell.
Hitachi swung into negative territory after Japan's biggest electronics maker sposted a quarterly net loss and announced plans to spend 273 billion yen ($2.9 billion) to buy out five listed subsidiaries.
But the overall market stayed solid as investors picked up banking shares that many see as having fallen behind the market's advance, with top bank Mitsubishi UFJ Financial Group rising.
In light trade, the benchmark Nikkei fell 1.40 points to 10,087.26. It rose 1.5 per cent the previous day to post its highest close since June 12th.
Market players said investors booked profits after the benchmark Nikkei climbed 11.5 per cent during the nine-day run to Monday, its longest climb since 1988.
The broader Topix rose 0.2 per cent to 930.
Japan's corporate earnings season gets into full gear this week and Canon Inc Hino Motors were among companies announcing earnings results after the close.
Chip-tester maker Advantest shed 2.1 per cent to 1,918 yen and Tokyo Electron fell 2.3 per cent to 4,640 yen. Electronics components maker TDK slipped 2 per cent to 4,930 yen.
Hitachi lost 3.6 per cent to 293 yen, compared with a 0.3 per cent rise before it announced its April-June earnings and details of a plan to buy out its subsidiaries.
Shares of big banks rose as investors picked them up on views that financials have lagged a sharp rise in the overall market in the past two weeks.
Japan's biggest bank Mitsubishi UFJ Financial Group gained 0.4 per cent to 555 yen and second-ranked Mizuho Financial Group rose 0.5 per cent to 212 yen.
Sumitomo Mitsui Financial Group jumped 3.9 per cent to 3,990 yen, boosted after Nomura Securities' Financial & Economic Research Center raised its rating for SMFG to "buy" from "neutral" and its target price to 4,500 yen from 3,700 yen.
Trade slowed on the Tokyo exchange's first section, with 1.8 billion shares changing hands, below last week's daily average of 2.3 billion.
Declining stocks outnumbered advancing ones 994 to 569.
Reuters