Japan's Nikkei retreats from record high as traders lock in profits

TOKYO, Oct 22 (Reuters) - Japan's Nikkei share average pulled back from an all-time peak on Wednesday, as investors took profits following two days of strong gains on expectations of fiscal stimulus under the country's new prime minister.

The Nikkei .N225 sank 0.7% to 48,968.79 by 0030 GMT, half an hour into the trading day, after closing at an all-time high on Tuesday, when it also notched an intraday record peak of 49,945.95.

The index was mostly pulled lower by tech stocks, following declines for Wall Street peers overnight.

The broader Topix .TOPX, by contrast, climbed 0.1% to 3,251.85, edging back towards the previous day's record high of 3,274.06.

The big winners were automakers, following a sharp drop in the yen to as low as 152.18 per dollar JPY= on Tuesday. A weaker Japanese currency buoys the value of overseas revenues.

Toyota Motor 7203.T climbed 3.4%, and the Tokyo Stock Exchange's transport equipment sub-index .ITEQP.T gained 2.6% to be the best performer among the 33 industry groupings.

Fiscal and monetary dove Sanae Takaichi was confirmed as Japan's first female premier on Tuesday.

Global money managers are circling back to Japan's stock and debt markets, drawn by hopes of reflationist government policies, as well as a desire to diversify from pricier U.S. and European markets.

Benchmark 10-year Japanese government bond yields JP10YTN=JBTC rose 1 basis point to 1.665% on Wednesday, but have been largely stable around that level this week.

Ten-year JGB futures 2JGBv1 edged up 0.02 yen to 136.12 yen.

Bond yields move inversely to prices.