2014.03.1201:35:53UTC+00Nikkei retreats 2 percent on stronger yen, profit-taking on latest increase

Japan's Nikkei share average backslide more than 2 percent on Wednesday trading action, as investors locked in earnings after the latest surge to a five-week high, while a firmer yen achieve overall sentiment and pull down exporters like Toyota Motor.

The Nikkei was relinquished 2.2 percent or 328.35 points at 14,895.39 as of 0132 GMT, recording its weakest since March 6, after bolstering 0.7 percent the previous day. It hit a five-week topmost mark of 15,312.60 last Friday.

Traders stated that thin volume may make volatility before the finalization of Nikkei futures and options on Friday. On Tuesday, trading volume on the main board was 1.81 billion shares, the weakest since mid-October.

"We need to be careful about possible volatility," said Takatoshi Itoshima, chief portfolio manager at Commons Asset Management. "Also, the market has more sellers than buyers now there were some emotional stock investors yesterday who expected the central bank to ease, so these people are selling today."

As anticipated, the Bank of Japan on Tuesday continued its huge financial stimulus on the view that economic development and consumer financial values will surge, remained on the right way.

Itoshima stated that while bond and foreign exchange traders had assumed there would be no unexpected things will happen from the BOJ, some stock market investors had been overly positive.

Among exporters, Toyota Motor Corp declined 1.7 percent, Honda Motor Co shed 1.8 percent and Nikon Corp gave up 2.4 percent.

The dollar moved lower to 102.97 from Tuesday's high of 103.43.

Bucking the weakness, Yamato Holdings skyrocketed as much as 6.7 percent to an eight-year high of 2,334 yen and was the 11th-most-exchanged stock by turnover. The Nikkei business daily reported that the parcel delivery service provider would bolster its shipping fees to corporate customers to cover increasing personnel and fuel expenditures.

The broader Topix index shed 1.6 percent to 1,213.05, with all of its 33 sub indexes in downbeat position.

The JPX-Nikkei Index 400, a gauge comprising companies with high return on equity and stable corporate governance, recorded a 1.7 percent decline to 10,968.97.