The Nikkei Stock Average pared a steep morning decline on Sept. 1, standing at 66,134.01 at the start of the afternoon session, down 177.92 points from the previous close after recovering more than 80 points from the morning finish of 66,050.33. The index had fallen as much as 735.32 points to 65,576.61 early in the session following U.S. equity weakness, before dip-buying and support from a narrowing decline in South Korea's KOSPI stabilized prices, with Nikkei 225 futures holding a firm 66,010 to 66,280 range over the lunch break. TOPIX started the afternoon higher at 4,183.76, up 27.47 points, after closing the morning at 4,177.85. Selling concentrated in nonferrous metals, services and semiconductor-related names including Furukawa Electric, SUMCO, Fujikura, Tokyo Electron and Renesas Electronics, while funds rotated into steel, electric power and materials, lifting Nippon Steel, JFE Holdings, Tokyo Electric Power and Kansai Electric Power. Rising Japanese long-term interest rates remained a cautionary factor for richly valued growth stocks, with dollar-yen near 159.70 to 159.80 and Hong Kong's Hang Seng soft; rate trends and Asian markets were seen as key to the afternoon direction.