* Nikkei falls 0.7 pct, Topix down 0.6 pct
* SoftBank hits 13-1/2 year high
By Tomo Uetake
TOKYO, Oct 2 (Reuters) - The Nikkei stock average fell to a
two-week low on Wednesday, having failed to maintain earlier
gains in a choppy session, after Prime Minister Shinzo Abe's
stimulus package unveiled the previous day offered little
impetus for fresh buying.
Although global shares rose on hopes that the U.S.
government shutdown may not last long, many investors remain
cautious with no clear solution in sight for the more important
agenda of raising the debt ceiling by mid-October.
By the midday break, the Nikkei was down 0.7 percent
at 14,382.11 after trading as low as 14,359.98, its lowest since
Sept. 17. The benchmark is still up 38 percent this year.
"Now that the prime minister's plan has already been priced
in, there are not many positive trading factors to chase the
market high," said Naoki Fujiwara, a fund manager at Shinkin
"Right now, investors are worrying about the U.S. debt limit
increase more than the government shutdown."
Abe decided on Tuesday to increase the sales tax to 8
percent from 5 percent next April as planned and announced a 5
trillion yen ($51 billion) stimulus package to help cushion any
blow to the economy.
He also said he has asked the ruling parties to promptly
begin deliberations on cutting the country's corporate tax rate.
"Not many players are trading today as institutional
investors moved to the sidelines," said Mitsushige Akino, chief
fund manager at Ichiyoshi Asset Management.
"In the short term, I think the market will be in risk-off
mode. But once the U.S. debt ceiling gets resolved and earnings
reporting season kicks off, the Nikkei may top 15,000."
The broader Topix shed 0.6 percent to 1,186.83 in
relatively light trade, with volume at 45 percent of its full
daily average for the past 90 trading days.
Heavyweight SoftBank Corp climbed as much as 4.2
percent to hit a 13-1/2 year high and was the most-traded stock
by turnover on the main board. The tech and telecoms group,
which sells Apple Inc's iPhone in Japan, has gained more than 10
percent since Apple unveiled its new iPhone models last month.
On the downside, cyclicals and exporters led the declines,
with the nonferrous metals subindex falling 2.5
percent to become the worst performer on the Topix.
- Budget, Tax & Economy
- government shutdown