TOKYO: Japan's Nikkei share average gave up most of its early gains on Tuesday to trade little changed, as investors slowed activity following recent sharp gains.
The Nikkei was up 0.17 per cent to 39,135.91 by the midday break, after rising as much as 0.7 per cent earlier in the session.
The index rose 0.78 per cent in the previous session, hitting 39,000 level for the first time in a month.
The broader Topix was up 0.16 per cent to 2,772.57.
"Investors sold stocks because they turned cautious that the index has risen too much after its previous session's gain," Fumio Matsumoto, chief equity strategist at Okasan Securities said.
"The market does not believe the Nikkei to reclaim 40,000 level anytime soon."
Chip-related shares rose to lift the Nikkei, with Advantest and Tokyo Electron rising 2.17 per cent and 0.85 per cent, respectively
Insurers were strong, with MS&AD Insurance Group surging 15 per cent to become the top percentage gainer on the Nikkei.
The insurer said on Monday its group net profit is forecast to rise 65 per cent and that it would buy back up to 8.2% of its shares.
Peer Tokio Marine Holdings rose 4.6 per cent after announcing it would sell down cross-share holdings to zero by the end of fiscal 2029/30.
The insurance sector rose 4 per cent to become the best performer among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes.
Sompo Holdings fell 4.53 per cent to become the worst percentage loser as the insurer flagged a 45 per cent decline in its annual net profit.
KFC Holdings was untraded with a glut of buy orders after the operator of Kentucky Fried Chicken outlets said U.S. buyout fund Carlyle Group offered to buy the shares of the company at 6,500 yen per stock.
Of more than 1,600 stocks trading on the TSE's prime section, 48 per cent of shares rose and 47 per cent fell with 3 per cent being flat. - Reuters