Feb. 18 (Bloomberg) -- Japanese semiconductor-related shares including Nikon Corp. declined after an industry group said that the book-to-bill ratio, which gauges demand for chip-equipment tools made in North America, declined in January.

``It's difficult to be optimistic about the outlook for the U.S. economy right now,'' said Yutaka Miura, a market analyst at Shinko Securities Co. in Tokyo. ``In a market where you see very little incentive to continue buying, you would want to avoid the hi-tech and exporter shares.''

The Nikkei 225 Stock Average was little changed, adding 9.22 points to 11,591.94 at 9:53 a.m. in Tokyo. The average fell as much as 0.2 percent earlier. The Topix index added 0.31 point to 1162.24.

Ito-Yokado Co. led gains by retailers after the company said it plans to set up a new company to revamp its apparel business. Japan Tobacco Inc., the world's third-biggest cigarette maker, jumped after the company said job cuts will help save the company 55 billion yen ($521 million) in the year ending March 2007.

Both benchmarks are set for their longest winning streaks since April 2004. The Nikkei has gained 0.2 percent, its fourth weekly gains, while the Topix index is little changed, adding 0.1 percent.

Nikkei 225 futures for March delivery were unchanged at 11,590 in Osaka and fell 0.1 percent to 11,590 in Singapore.

Book-To-Bill

Nikon, the world's biggest maker of machines used to print circuitry onto silicon wafers, lost 23 yen, or 1.8 percent, to 1,278. Tokyo Electron Ltd., the world's second-largest maker of semiconductor production equipment, slipped 50 yen, or 0.8 percent, to 6,560.

The January book-to-bill ratio for North American chip-tool makers was 0.80, San Jose, California-based Semiconductor Equipment & Materials International said in a statement today. In December, the ratio stood at 0.94. A ratio of less than one indicates the market is contracting.

The Topix Retail Trade Index rose 0.4 percent, making it the biggest contributor to limiting the loss in the Topix.

Ito-Yokado, the nation's second-largest retailer since it was overtaken by Aeon Co. in the fiscal year through March 2004, jumped 130 yen, or 3.1 percent, to 4,270. The company said it will hold a press conference later today to detail its plan to set up a new company. Earlier, the Nihon Keizai newspaper said Yukio Fujimaki, a former apparel buyer at department store Isetan Co. and the president of Fukusuke Corp., will be leading the company.

Japan Tobacco jumped 50,000 yen, or 4.7 percent, to 1.11 million. It was the most active stock on the first section in terms of value. The company yesterday cut its annual profit goal almost a third because of retirement charges for about 15 percent of its workers. The job reductions are part of a three-year cost- cutting plan the company said.

To contact the reporter on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net.

Last Updated: February 17, 2005 19:58 EST