Stocks lost further ground Friday, weighed down by continued selling to cash in gains following a recent rapid advance.
The 225-issue Nikkei average lost 191.90 points, or 0.8 percent, to end at 23,783.72 on the Tokyo Stock Exchange. On Thursday, it shed 135.34 points.
The Topix index of all first-section issues closed down 8.54 points, or 0.47 percent, at 1,792.65, after retreating 1.54 points the previous day.
Both market gauges fell for the third straight session.
The Tokyo market came under selling pressure following Wall Street’s downturn on Thursday.
“A speed correction continued” for stock prices following the recent surge, Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said, noting the losses were “mild” thanks to a wave of buying on dips.
An official of a midsize securities firm said, “Selling to square positions emerged ahead of a three-day weekend.” The Tokyo market will be closed on Monday for a national holiday.
A wait-and-see mood prevailed prior to the announcement of U.S. jobs data for September later on Friday, Akira Tanoue, senior investment strategist at Nomura Securities Co., said.
Tanoue said he believes the market’s downside was supported by purchases of exchange-traded funds by the Bank of Japan.
Falling issues far outnumbered rising ones 1,506 to 536 in the TSE’s first section, while 68 issues were unchanged.
Volume fell to 1.489 billion shares from Thursday’s 1.590 billion shares.
High-tech issues, including semiconductor-related Tokyo Electron and Sumco as well as electronic parts supplier Murata Manufacturing, met with selling after their U.S. peers lost ground on Thursday.
Oil companies JXTG, Inpex, Showa Shell and Idemitsu were also downbeat, reflecting lower crude oil prices.
Other major losers included clothing retailer Fast Retailing and cosmetics maker Shiseido.
By contrast, retailer FamilyMart Uny Holdings attracted purchases after revising up on Thursday its consolidated earnings projections for the half year that ended in August.
Also on the plus side were drugmaker Shionogi and advertising agency Dentsu.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average dropped 100 points to 23,820.