Stocks turned lower Friday on the Tokyo Stock Exchange following selling prompted by a 401-point surge the previous day.
The key 225-issue Nikkei average fell 236.67 points, or 1.05 percent, to end at 22,250.25 after jumping 401.12 points on Thursday.
The Topix index of all first-section issues lost 8.27 points, or 0.49 percent, to end at 1,672.98, after climbing 28.82 points the previous day.
After fluctuating around the previous day’s closing levels in early trading, the key market gauges headed south later in the morning as investor sentiment was battered by sluggish performances by Chinese stocks, market sources said.
The yardsticks remained in negative territory in the afternoon as selling of mainstay issues continued, the sources said.
The Tokyo market was affected by weakness in other Asian stocks “in the absence of fresh incentives in Japan,” Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., said, adding that the yen’s fall against the dollar failed to offset the downward pressure.
Otsuka indicated that Tokyo stocks fell more sharply than he expected while selling incentives were limited.
An official at an online brokerage pointed out that selling pressure grew when the Nikkei approached 22,500.
“It is difficult for investors to take risks” before Japanese companies are set to release their scorecards at the peak of the earnings reporting season, the official added.
Despite the falls of the key indexes, rising issues outnumbered losers 1,047 to 971 on the TSE’s first section and 94 issues were flat.
Volume decreased to 1.447 billion shares from Thursday’s 1.537 billion shares.
Shiseido tumbled 4.99 percent after investors were disappointed by the major cosmetics maker’s announcement Thursday that it left its earnings projections for the full year to December unchanged.
Nonferrous metal producer Sumitomo Metal Mining met with selling following a downward revision to its earnings estimates for the year to March 2019, also released Thursday.
Lower crude oil prices weighed on oil wholesalers Cosmo Energy and JXTG.
By contrast, automaker Suzuki, food producer Meiji Holdings and convenience store operator FamilyMart Uny were upbeat.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 230 points to 22,270.