The benchmark Nikkei stock average snapped its four-session winning streak Monday, succumbing to selling to lock in profits.
The 225-issue Nikkei average lost 60.03 points, or 0.26 percent, to end at 23,331.84, after gaining 61.55 points Friday.
But the Topix index of all issues listed on the first section of the Tokyo Stock Exchange strengthened 1.26 points, or 0.07 percent, to 1,704.03, advancing for the fifth straight market day. It rose 4.64 points the previous trading day.
Stocks spurted at the outset, as investors took heart from new closing highs marked by the Dow Jones Industrial Average and the Nasdaq composite index in the U.S. market Friday, brokers said.
But profit-taking soon gained strength, sending the market into negative territory in late morning trading.
In the absence of active buyers, the Nikkei remained in negative territory in the afternoon while the Topix went sideways in a range around its closing level for the previous session.
Sentiment was dampened by U.S. President Donald Trump’s remark Friday that “I haven’t agreed anything” about removing fresh tariffs imposed by the United States and China on each other’s goods, some players noted.
But an official at a bank-affiliated securities house played down the impact of the denial of a tariff rollback agreement, saying, “It was one of Trump’s negotiating techniques.”
“The market was rather weighed down by a fall in U.S. index futures in off-hours trading while investors were waiting for new developments on the U.S.-China trade front,” said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc.
On the TSE’s first section, rising issues outnumbered falling ones 1,294 to 787 while 72 issues were unchanged. Volume fell to 1.241 billion shares from Friday’s 1.626 billion shares.
Japan Petroleum Exploration Co., Inpex Corp. and other oils met with selling after their U.S. peers ExxonMobil Corp. and Chevron Corp. fared poorly on Wall Street on Friday.
Tire maker Bridgestone Corp. fell after its January-September earnings failed to beat market consensuses.
Among other losers were clothing store chain Fast Retailing Co. and industrial robot producer Fanuc Corp.
On the other hand, warehouses and shipping services such as Mitsubishi Logistics Corp. and Kintetsu World Express Inc. drew popularity.
Sony Corp. attracted purchases after Mitsubishi UFJ Morgan Stanley Securities Co. raised its target stock price for the technology giant.
Also on the positive side were automaker Honda Motor Co. and mobile phone carrier KDDI Corp.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 80 points to end at 23,300.