* Gree surges to 10-month high on Goldman Sachs upgrade
* Mixi untraded with glut of sell orders
* Investors sell large caps while awaiting Fed signs -
By Ayai Tomisawa
TOKYO, Dec 11 Japan's Nikkei share average
dropped for a second day on Wednesday, which traders said
stemmed from hedge funds unwinding positions in risky assets
while waiting to see if the U.S. Federal Reserve tapers its
Bucking the weakness, internet gaming firm Gree Inc
surged 20 percent and was the most traded stock by turnover and
was the biggest percentage gainer after Goldman Sachs upgraded
its rating to 'neutral' from 'sell'.
The Nikkei dropped 0.4 percent to 15,542.59 in
mid-morning trade after shedding 0.3 percent on Tuesday. On
Monday, it rallied 2.3 percent, its best one-day gain in three
months, spurred by a slide in the yen after an upbeat U.S. jobs
report raised expectations the Fed next week could begin
The Topix fell 0.3 percent to 1,252.94.
Traders also said that although there are concerns about
overbought signs in the market, the Nikkei should be supported
at 15,000, which is the strike price of 17,000 put option
contracts seen in the market ahead of the Nikkei 225 futures and
options settlement on Friday.
"People are not taking new positions. They are unloading
what has been popular recently," said Yoshiyuki Kondo, an
analyst at Daiwa Securities, adding that investors are selling
large cap stocks including some exporters and domestic-demand
sensitive shares such as financials until more cues on when the
Fed will tapering its stimulus.
Toyota Motor Corp shed 0.6 percent, Honda Motor Co
dropped 0.5 percent and Mitsubishi UFJ Financial Group
fell 0.8 percent.
On Wednesday, Gree soared to a 10-month high, extending its
Tuesday's 15 percent gain driven by a rally in internet-related
stock peer Mixi Inc after its recently launched
"Monster Strike" mobile game gained popularity.
Mixi was untraded with a glut of sell orders at 7,560 yen,
indicating a 17 percent drop from the previous day's close of
9,060 yen after Goldman Sachs cut its rating to 'sell' from
"Mixi is trading way above its fundamentals, so selling
greatly makes sense," a fund manager at a Japanese asset
management firm said.