September 23, 2016 / 2:47 AM / 2 years ago

REFILE-Nikkei profit-takers sell financials; worries on strong yen

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* Nikkei has fallen 0.2 pct for the week

* Nikkei trades above 25-day moving average, next target 200-day moving average

By Ayai Tomisawa

TOKYO, Sept 23 (Reuters) - Japan’s Nikkei share average edged down on Friday morning as investors took profits on financial stocks that had soared in the previous session, and worries about a stronger yen kept the market on edge.

The share market re-opened after a national holiday in Japan on Thursday, when the dollar tumbled to a nearly four-week low of 100.10 yen in reaction to the U.S. Federal Reserve paring its longer-term expectations for interest rate increases.

During Asian trade on Friday, the dollar was up 0.4 percent at 101.13 yen but still poised to shed 1.1 percent for the week.

The Nikkei fell 0.2 percent to 16,777.09 in midmorning trade after soaring 1.9 percent on Wednesday as investors took heart from the Bank of Japan’s decision to overhaul its monetary policy.

The Nikkei trades above its 25-day moving average of 16,716.97, and whether the benchmark index will rise above the 200-day moving average is focused, traders say.

For the week, the Nikkei has shed 0.2 percent.

“Investors are cautious about taking risks after the Fed’s outcome,” said Nobuhiko Kuramochi, a strategist at Mizuho Securities. “The U.S. is in the tightening cycle for sure, but the ceiling may not be high.”

Profit-taking hit bank and insurance stocks, which had jumped on Wednesday after the central bank made an abrupt shift to targeting interest rates on government bonds to achieve its elusive inflation target.

The BOF refrained from taking negative rates further into negative territory.

Mitsubishi UFJ Financial Group dropped 1.2 percent, Mizuho Financial Group fell 1.6 percent, and Dai-ichi Life Insurance Co tumbled 4.1 percent.

Securities stocks underperformed, with Nomura Holdings falling 3.1 percent and Daiwa Securities shedding 0.5 percent.

Exporters lost ground, with Toyota Motor Corp dropping 2.8 percent and Honda Motor Co falling 2.2 percent.

The broader Topix was down 0.2 percent to 1,350.00 and the JPX-Nikkei Index 400 declined 0.3 percent to 12,108.56. (Editing by Simon Cameron-Moore)

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