Stocks turned lower Tuesday as investors refrained from active trading to wait for further details of progress in U.S.-China trade talks.
The Nikkei 225 average lost 78.84 points, or 0.37 percent, to end at 21,449.39 after adding 102.72 points Monday.
The Topix, which covers all first-section issues on the Tokyo Stock Exchange, fell 3.67 points, or 0.23 percent, to close the session at 1,617.20. It climbed 11.35 points Monday.
After opening higher on the back of an extended rally on Wall Street overnight and the dollar’s rise above ¥111, the Tokyo market came under selling pressure as the greenback slashed gains and fell back below the level.
Both equity indexes moved in negative territory throughout the afternoon session amid the wait-and-see mood over the U.S.-China trade issue, brokers said.
Stocks suffered a decline after “the market had priced in recent positive trading factors,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.
U.S. President Donald Trump has announced “substantial progress” in the recent bilateral talks, delaying a planned tariff hike for U.S. imports from China. But details of the progress have not been released yet.
Reported airstrikes by India in the Pakistan-controlled side of the disputed Kashmir region may have induced selling through algorithm-based automated trading systems, Otsuka also said.
“Market participation appeared limited other than individual investors. Players were waiting for fresh trading incentives to emerge,” an official of a major brokerage firm said.
Events that may draw market attention this week include congressional testimony by U.S. Federal Reserve Chairman Jerome Powell on Tuesday and Wednesday as well as a U.S.-North Korean summit on Wednesday and Thursday.
Falling issues outnumbered rising ones 1,250 to 768 in the first section, while 107 issues were unchanged.
Volume increased to 1.078 billion shares from 1.057 billion Monday.
Oil names met with selling following a plunge in crude oil prices in New York. JXTG lost 1.25 percent, Idemitsu dropped 2.39 percent and Showa Shell fell 2.08 percent.
Other major losers included clothing retailer Fast Retailing and mobile phone carrier KDDI.
By contrast, drugmakers and power utilities were higher.
Sumitomo Forestry gained more ground after Mitsubishi UFJ Morgan Stanley Securities Co. raised its investment rating for the company.
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