Nikkei turns lower as Wall St-inspired rally finds no followers

Thu Feb 13, 2014 10:33pm EST

* Worsening technical outlook seen hurting sentiment
    * Kirin hits 1-year low as profit forecast disappoints
    * Mixi bucks market fall, jumps 19 pct on outlook hike


    TOKYO, Feb 14 (Reuters) - Japan's Nikkei share average
reversed early gains and fell into negative territory on Friday,
as a rally inspired by gains on Wall Street failed to attract
follow-through buying from investors.
    Traders said there was no particular news behind the sudden
about-face, but analysts said a worsening technical outlook for
the Nikkei could have contributed to deteriorating sentiment.
    The Nikkei was down 0.7 percent at 14,435.07, having
erased a rise of 1 percent in early trade.
    For chart analysts, the market was hit by a so-called death
cross - seen as a major bearish signal - as the Nikkei's 75-day
average clearly fell below its 25-day average.
    In addition, the Nikkei now risks falling below the 200-day
average, which could be seen as sign of a worsening medium-term
outlook.
    "The market is being dragged down by position unwinding
ahead of the weekend. Foreign investors continue to sell and
there are no investors who bid up at this level," said a trader
at a Japanese brokerage.
    Real estate and brokerages were sold
in heavy trade, with Sumitomo Realty and Mitsubishi
Fudosan sliding 6.5 percent and 5.9 percent,
respectively.
    Kirin Holdings Co tumbled 8.2 percent to a one-year
low after the brewer forecast 140 billion yen in operating
profit for 2014, below the market consensus of 152.1 billion
yen.
    Bucking the trend, social networking services provider Mixi
Inc soared 19 percent to a 2-1/2-week high after it
raised its annual outlook to an operating profit of 200 million
yen from a loss of 1.6 billion yen due to strong smartphone
gaming traffic.
    The broader Topix fell 1 percent to 1,188.06.
    The JPX-Nikkei Index 400, an index launched this
year comprised of firms with high return on equity and strong
corporate governance, fell 0.9 percent to 10,750.64.
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