Stocks fell on the Tokyo Stock Exchange Monday, hurt by selling to cash in on gains following the recent market advance.
The Nikkei 225 lost 157.77 points, or 0.69 percent, to end at 22,707.38. On Friday, the key market gauge had inched down 4.35 points.
The Topix index closed down 15.04 points, or 0.87 percent, at 1,720.31, after retreating 3.79 points the previous trading day.
Buying was held in check as investors sat on the fence waiting to see further developments in trade issues involving the United States, brokers said.
On Friday, the United States failed to strike a deal with Canada to revise the North American Free Trade Agreement. Their talks will resume Wednesday.
Market participants also retreated to the sidelines because the U.S. market will be closed Monday for the Labor Day holiday, the brokers said.
Investors “were unable to move in the absence of fresh incentives,” said an official of a bank-linked securities firm.
Hiroaki Kuramochi, chief market analyst at Saxo Bank Securities Ltd., attributed Monday’s fall to futures-led selling through algorithm-based automated trading systems.
Kuramochi also indicated that weak Chinese stocks fueled fears over the U.S.-China trade war and battered investor sentiment.
Falling issues overwhelmed rising ones 1,630 to 410 in the TSE’s first section, while 65 issues were unchanged.
Volume decreased to 1.083 billion shares from 1.303 billion shares Friday.
Sumitomo Dainippon Pharma closed 9.39 percent lower after announcing Saturday that the U.S. Food and Drug Administration has rejected its application for a new drug to treat attention-deficit hyperactivity disorder, or ADHD.
Renesas Electronics met with selling after disclosing a plan Friday to acquire U.S. semiconductor producer Integrated Device Technology Inc. The deal is expected to be worth some ¥600 billion.
Air conditioner maker Daikin and mobile phone carrier SoftBank Group were among other major losers.
Meanwhile, airlines JAL and ANA, mobile virtual network operator Japan Communications and clothing retailer Fast Retailing attracted purchases.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average dropped 150 points to end at 22,710.