Nikkei edges down

Japan's Nikkei share average edged down on Wednesday after staying nearly flat for most of the session as investors took profits from gains the previous day, while China's economic data received a muted reaction from the market. China's economy expanded by 2.0 percent in the second quarter from the previous quarter, taking annual growth to 7.5 percent. Retail sales and industrial output were either in line with forecasts or slightly higher.
The Nikkei ended 0.1 percent lower at 15,379.30 after it closed at a 1-1/2-week high the previous day. The broader Topix was flat at 1,273.59, and the JPX-Nikkei Index 400 was also flat at 11,588.37. Investor risk appetite was curbed after US momentum shares dropped after Federal Reserve Chair Janet Yellen and her fellow Fed policymakers raised concerns about high valuations in those sectors.
The Nikkei was little changed at 15,388.78 points in mid-morning trade after opening a tad lower. On Tuesday, it rose 0.6 percent to 15,395.16, the highest closing level since July 4. A recovery in growth momentum could boost Chinese demand for goods and commodities from the rest of Asia. Exports have been a weak point for the Japanese economy this year.
"Everyone knew these shares' valuations were too expensive as they drove the US market higher last year. Investors reacted to Yellen's comments, but what she said makes sense," said Kyoya Okazawa, head of global equities at BNP Paribas. "It's good that she tries to point out fair value of risky assets before interest rates go up." Exporters were mixed, with Toyota Motor Corp up 0.6 percent and Honda Motor Co 0.6 percent, while Panasonic Corp fell 0.5 percent. Bucking the trend, JX Holdings gained 1.5 percent after the Nikkei business daily reported that JX Nippon Oil & Energy plans to set up 100 Japanese hydrogen stations by fiscal 2018 in an effort to develop the infrastructure needed for the adoption of fuel cell vehicles. The broader Topix rose 0.2 percent and the JPX-Nikkei Index 400 advanced 0.2 percent to 11,614.24.