Nikkei pulls back from 7-year high on profit-taking before GDP data

jueves 13 de noviembre de 2014 22:22 GYT

* Nikkei turns as investors take profits

* Foreigners' heavy share-buying may be a record

By Ayai Tomisawa

TOKYO, Nov 14 (Reuters) - Japan's Nikkei share average pulled back from a seven-year high on Friday as investors turned cautious before economic growth data next week, amid mounting expectations that Prime Minister Shinzo Abe would call an early election and possibly postpone a sales tax hike.

The Nikkei benchmark dropped 0.2 percent to 1,7360.77 in mid-morning trade after rising as high as 0.7 percent to 17,520 at the open, its highest intraday level since July 2007.

The Nikkei started rising on Oct. 31, after investors cheered the Bank Of Japan's surprise easing and the Government Pension Investment Fund's decision to increase its allocation to Japanese equities.

Investors also lapped up shares this week on reports Abe is preparing to delay a second rise in the sales tax in an attempt to energise Japan's sluggish recovery.

The Nikkei has soared 11 percent since Oct. 31. For the week, the benchmark has gained 2.6 percent.

But market observers said investors are cautious about ploughing more cash into a market that is seen as overheated.   Continuación...