The benchmark Nikkei stock average lost further ground on Tuesday, succumbing to continued profit-taking.
The 225-issue Nikkei gave up 45.67 points, or 0.20 percent, to end at 23,051.08, after losing 192.61 points Monday.
But the Topix closed 1.03 points, or 0.06 percent, higher at 1,610.85, in a turnaround from a 13.56-point drop the previous day.
Stocks remained under pressure for most of the morning session from moves to lock in profits from the previous week’s rally, brokers said.
The U.S. Commerce Department’s announcement Monday of fresh sanctions against China’s Huawei Technologies Co. also gave investors an incentive for selling.
But in the afternoon, what appeared to be purchases of exchange-traded funds by the Bank of Japan helped the market pare its morning losses, with the Topix coming back into positive terrain, brokers noted.
“The market was also weighed down by the yen’s appreciation against the dollar,” said Maki Sawada, vice president of Nomura Securities Co.’s Investment Research & Investor Services Department.
Meanwhile, trading remained thin with foreign institutional investors on summer holidays, an official at a midsize securities firm said.
“Trading in small-cap stocks, favored by individual investors, was active” while institutional players stayed low-key, an official at a bank-affiliated brokerage house pointed out.
On the first section of the Tokyo Stock Exchange, falling issues slightly outnumbered rising ones 1,124 to 959 with 90 issues unchanged. Volume increased to 974 million shares from Monday’s 819 million shares.
Portable Wi-Fi router rental company Vision plunged 9.51 percent on its profit warning for the year ending in December.
Among other major losers were auto parts supplier Denso and technology firm Kyocera.
On the other hand, seasoning producer Ajinomoto and game maker Bandai Namco rose, after Mitsubishi UFJ Morgan Stanley Securities Co. lifted its target stock prices for the firms.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average fell 20 points to end at 23,060.