TOKYO, Oct 18 Reuters - Japanese share slipped on Monday as investors booked profits following a rally over the past two weeks, but automakers gained after Toyota Motor hinted that it could still hit its full-year output plan despite chip shortages.
Investors were also cautious on rising uncertainty on the Chinese economy as debt-laden Chinese property firm Evergrande struggle for its survival and as China's GDP slowed in the third quarter.
By midday, the Nikkei share average fell to 28987 0.28%. 33, its highest level since the 1st Oct. 1, since Oct. 33.
A lot of investors would like to take profits when the Nikkei is above 29,000. My feeling is they are also wary of Evergrande's troubles ahead of its deadline to avoid default, said Hiroyuki Ueno, senior strategist at Sumitomo Mitsui Trust Asset Management.
The broader Topix losses 0.37% to 2,016. 53 but Topix transport equipment maker index rose 1.8% to reach its highest levels since 2015 to reach its highest levels since 2015.
Toyota Motor rose 2.5% after it reduced its planned global output for November by as much as 15% due to ongoing chip shortages, but indicated it would ramp up production from December by sticking to its latest full-year production target.
Rival carmakers also gained with Suzuki Motor up 2.5%, Subaru adding 2.2% and car part manufacturer Denso rising 2.6% as a weaker yen is seen as boosting their profit.
Stock Market shares were another bright spot thanks to the strength of commodities market. Mitsui Mining rose 5.1%, while Sumitomo Metal gained 2.1% and oil explorer Inpex rose 5.0%.
BayCurrent Consulting lost 11.7%, as its strong quarterly earnings fell short of solid investor expectations. The stock price was up almost 150% this year.
Fintech start-up Money Forward tumbled 12.8% after reports reported larger-than-expected quarterly losses.