The benchmark Nikkei average advanced for the eighth consecutive session Thursday, helped by an overnight rise in U.S. equities and a weaker yen.
The 225-issue Nikkei average gained 21.28 points, or 0.09 percent, to end at 22,869.50 on the Tokyo Stock Exchange, after adding 34.75 points on Wednesday.
But the Topix index of all first-section issues edged down 0.46 point, or 0.03 percent, to close at 1,739.14. It gained 7.97 points the previous day.
The market opened higher, with investor sentiment brightened by brisk U.S. stocks overnight and the yen’s weakening against the dollar following stronger-than-expected revised U.S. gross domestic data for April-June, released on Wednesday, brokers said.
After the initial buying ran its course, both indexes lost steam, hurt by selling on rallies, brokers said.
“Domestic institutional investors sold large-cap issues” when the Nikkei climbed to around 23,000, an official of a major securities firm said.
Weak Shanghai stocks and lower U.S. index futures in off-hours trading dented investors’ risk appetite, said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Some investors continued to refrain from active buying to wait for developments from the new Japan-U.S. trade talks, an official of an asset management company said. The next meeting of the dialogue, dubbed the “free, fair and reciprocal,” or FFR, talks, is slated for next month.
Rising issues outnumbered falling ones 1,167 to 844 in the TSE’s first section, while 93 issues were unchanged.
Volume rose to 1.399 billion shares from 1.126 billion shares on Wednesday.
Technology names were buoyant after the tech-heavy Nasdaq composite index hit a record high in the United States overnight. Major gainers included Sony, measurement device maker Keyence and industrial robot producer Fanuc.
Elecom soared 5.01 percent after the Ichiyoshi Research Institute revised its investment rating and stock price target for the maker of computer equipment upward, brokers said.
Other major winners included oil names Idemitsu and Inpex, game maker Nintendo and clothing retailer Fast Retailing.
By contrast, Lawson slumped 1.37 percent after JPMorgan Securities Japan Co. revised its investment rating and target stock price for the convenience store chain operator downward.
Food maker Meiji Holdings sagged 0.93 percent to close at a year-to-date low of ¥7,420 after similar assessments by Daiwa Securities Co.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average gained 20 points to end at 22,870.