On the economic front Japanese overall household spending rose 2.0% on q year over basis. This was the second rise in three months and shows a positive change of trend after a string of consecutive declines throughout most of this year. Most analysts consider a pick up in Japanese consumer spending as a critical precursor to any possible change of tone from the present ultra accommodative Zero Rate Policy of the Bank of Japan. Profit-taking in export-focused and domestic stocks pushed down Japanese shares on Tuesday. The tech-heavy Nikkei 225 closed the day down 0.8 per cent at 15,423.38. The Topix declined 0.4 per cent to 1,591.34 – its fall broken by strength in banking stocks. The decline in many export and domestic sectors reflected nervousness about high valuations, following Monday’s rise in both Japanese stock indices to five-year closing highs. Hitachi, the electronics conglomerate, declined 1.8 per cent to Y813. Elpida Memory fell 2.4 per cent to Y3,650. NEC, the broad-based high-tech manufacturer, was down 1.7 per cent at Y764. Transport equipment also succumbed to profit-taking, falling 1.4 per cent. Toyota, Japan’s biggest carmaker, declined 1.2 per cent to Y5,840. Nissan also fell 1.2 per cent to Y1,208. Securities saw a sharp about-turn, ending the day 1.2 per cent down despite racing upwards during the morning. Nomura, Japan’s biggest securities house, was down 1.8 per cent to Y2,155. Daiwa Securities, its biggest rival, fell 0.4 per cent to Y1,271. Nikko Cordial, the smallest of the big three, fell 1 per cent to Y1,860. But investors in banking stocks ignored the market trend, boosting the sector by 2.5 per cent. Banking stocks have performed extremely well this year, and have remained strong despite periodic selling on nervousness that prices have reached unsustainable levels. Mizuho climbed 3.6 per cent to Y926,000. SMFG, leapt 3.5 per cent to Y1,190,000. Resona climbed 4 per cent to Y442,000. Upstream oil companies also bucked the market, rising in response to the climb in the crude oil price above $60 a barrel. Inpex jumped 5.7 per cent to Y1,000,000. Japan Petroleum Exploration leapt 5.2 per cent to Y6,720.