TOKYO, Dec 22 (Reuters) - Japan's Nikkei average inched lower on Wednesday backing away from a seven-month intraday high hit in the morning, as downbeat comments by the prime minister on the economy prompted investors to adjust positions around new levels.
Japan's government cut its view on exports and business sentiment on Wednesday due to a slowdown in Asia's economic recovery and a persistently strong yen. It also said the economy is at a standstill and in a difficult situation with a high jobless rate.
But underlying sentiment in the holiday-thinned market remained strong, lifting the Nikkei to its highest level since May 14 at one point, reflecting general bullishness in global equities markets and positive outlook for the Nikkei in 2011.
The benchmark Nikkei ended the day down 0.2 percent or 24.05 points at 10,346.48, after touching a fresh seven-month high of 10,394.22.
The broader Topix index shed 0.1 percent to 905.78. (Reporting by Antoni Slodkowski; Editing by Michael Watson)