* Nikkei slips, hit by profit-taking
* Sanyo jumps on report of strong earnings in 10/11
* Nikkei MACD turns bearish, RSI falls to 59
By Elaine Lies
TOKYO, April 13 (Reuters) - Japan's Nikkei average slipped 1
percent on Tuesday, moving further away from 18-month highs hit
last week as wariness before tech bellwether Intel's earnings
prompted profit-taking in chip-linked shares.
But Sanyo Electric Co <6764.T> rose 3.3 percent on a report
that its operating profit is likely to jump 50 percent this
financial year aided by the distribution network of its parent
company, Panasonic Corp <6752.T>. []
Market players said investors were nervous ahead of earnings
by key U.S. companies such as Intel Corp <INTC.O> later on
Tuesday, and this combined with lingering worries about the
market having become overheated was behind the profit-taking.
"Though good earnings are expected, these predictions are
factored in, so that anything except a large positive surprise
could lead to selling once the results are out," said Takashi
Ushio, head of the investment strategy division at Marusan
Securities.
"A certain amount of this is hitting chip-linked shares ahead
of the Intel results later today, weighing on the Nikkei."
In active trade, the benchmark Nikkei <> shed 110.60
points to 11,141.30, while the broader Topix <> fell 0.8
percent to 986.74.
The Nikkei's relative strength index (RSI) has fallen as low
as 59 after rising to a high of 76 last week. Anything from 70
and above is considered overbought.
Some longer-term indicators such as MACD have turned bearish,
with the MACD line now breaking below the signal line, a move
seen as a sell signal.
But sharp falls are not expected, with support likely to hold
for now near the Nikkei's 25-day moving average, currently at
just under 11,000.
On Wall Street, the Dow <> closed at 11,005.97, its
highest close since September 2008. Other U.S. stock indexes also
rose on expectations of good earnings, and the CBOE Volatility
Index <.VIX>, a popular measure of investor fear, hit its lowest
close since July 19, 2007.
Worries that Intel's earnings might spark selling even if
good set off profit-taking of semiconductor-linked shares, market
players said.
Chip gear manufacturer Tokyo Electron <8035.T> lost 1.4
percent to 6,340 yen, chip-tester maker Advantest Corp <6857.T>
shed 1.8 percent to 2,419 yen and Shin-Etsu Chemical <4063.T>,
which makes semiconductor wafers, edged down 0.9 percent to 5,510
yen. Stepper maker Nikon <7731.T> lost 1.8 percent to 2,019 yen.
But Isuzu Motors <7202.T> gained 4.7 percent to 268 yen after
Nomura Securities raised its rating to "buy" from "neutral",
saying the truck company's earnings are likely to have beaten the
firm's own estimate for the year ended in March.
In a note to clients, Nomura analyst Shotaro Noguchi said the
brokerage expects the firm to post an operating profit of 5
billion yen for the year just ended, above Isuzu's estimate of a
loss of 5 billion yen.
Some 1.2 billion shares changed hands on the Tokyo exchange's
first section, up from last week's morning average of 1.1
billion.
