October 24, 2018 / 7:16 AM / in 22 days

Nikkei rises in choppy trade, Subaru tumbles on profit forecast cut

* Topix hits lowest since September 2017

* Sumco nosedives after Credit Suisse cuts rating on oversupply

* Komatsu falls on Caterpillar’s Wall St sell-off

By Ayai Tomisawa

TOKYO, Oct 24 (Reuters) - Japan’s Nikkei on Wednesday recouped some of the previous day’s hefty losses but gains were limited as investor sentiment was still fragile after the recent heavy selling in global shares.

The Nikkei share average ended 0.4 percent higher at 22,091.18, making a turnaround from negative territory after risk appetites recovered on rising Chinese shares. The benchmark index dropped 2.7 percent on Tuesday, hit by a pullback in global equities.

The broader Topix ended 0.1 percent higher to 1,652.07, after touching 1,638.69, its lowest level since September 2017.

“The market is still volatile and investors are guarded against the fast-paced moves we’ve seen lately,” said Masanari Takada, a quant strategist at Nomura Securities.

Domestic-demand sensitive stocks outperformed, with retail, food and utility stocks attracted buying.

Index heavyweight Fast Retailing gained 2.2 percent and Isetan Mitsukoshi 2.8 percent. Kikkoman Corp surged 2.5 percent and Tokyo Gas advanced 1.7 percent.

Subaru Corp stumbled 7 percent to a more than four-year low after the automaker nearly halved its operating profit forecast for April-September.

It blamed increased costs following a vehicle recall after the company failed to adhere to proper inspection steps last year.

Wednesday’s losers included silicon products maker Sumco Corp, which nosedived 11 percent to 1,388 yen after Credit Suisse slashed its stock rating to “neutral” from “outperform” and cut its target price to 1,385 yen from 3,530 yen. The brokerage cited an oversupply from greater-than-expected capacity expansion.

Construction equipment maker Komatsu tumbled 5 percent after Caterpillar Inc dived 7.6 percent when it did not raise its annual profit forecast again. (Editing by Richard Borsuk)

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