Tokyo stocks fell further Monday, weighed down by a drop in the U.S. equity market late last week.
The 225-issue Nikkei average of the Tokyo Stock Exchange lost 115.48 points, or 0.50 percent, to end at 23,089.95, falling for the second straight session. On Friday, the key market gauge shed 260.10 points.
The Topix index of all first section issues finished 6.86 points, or 0.42 percent, lower at 1,609.74, after falling 14.64 points the previous trading day.
The Tokyo market opened lower, on the back of falls in all three major U.S. stock market yardsticks Friday that reflected tech sell-offs and waning expectations for progress in stalled talks over a new coronavirus relief package by the U.S. government, brokers said.
Although both the Nikkei and Topix indexes cut some of their early losses by the morning close thanks to buying on dips, they struggled for direction in the afternoon, as many market players adopted a wait-and-see stance with the U.S. market closed on Monday for Labor Day, they added.
The brokers attributed the day's fall of the Nikkei also to a plunge in technology investor SoftBank Group Corp., a heavily-weighted component of the key market gauge, which came in response to news reports of the firm's massive derivative purchases linked to the U.S. tech sector.
The weakness of Chinese stocks was another factor that weighed on the Tokyo market, according to Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co.
Despite the dismal readings of the market indicators, however, rising issues outnumbered falling ones 1,277 to 817 on the TSE's first section, while 78 issues were unchanged. Volume decreased marginally to 1.062 billion shares from Friday's 1.074 billion shares.
Chipmaking gear manufacturer Tokyo Electron and other semiconductor-related issues met with selling, following falls in their U.S. industry peers on Friday.
SoftBank Group plummeted 7.15 percent.
Among other major losers were beverage-maker Asahi Group Holdings and automaker Toyota Motor Corp.
On the other hand, Ushio Inc gained 5.35 percent, as investors cheered the lighting equipment-maker's announcement that it has confirmed the inactivation efficacy of its Care222 ultraviolet ray product against the novel coronavirus.
Advertising giant Dentsu Group Inc. and job information provider Recruit Holdings Co. also went up.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average fell 120 points to end at 23,050.
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