Tokyo stocks lost another ground Monday amid a dearth of market-moving factors.
The 225-issue Nikkei average of the Tokyo Stock Exchange fell 61 points, or 0.26%, to close at 23,558.69, after the benchmark index gave up 27.38 points Friday.
The Topix index of all TSE first section issues closed down 4.03 points, or 0.24%, at 1,643.35, following an 8.09-point drop the previous trading day.
Despite Wall Street’s three-day rally until Friday on the back of expectations for a fresh coronavirus relief package, investors in the morning opted to lock in gains from a bull run on the Tokyo market last week, brokers said.
The market turned lethargic in the afternoon due chiefly to the absence of fresh trading incentives, they added.
Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., pointed out that trading was led by individual investors disregarding the bullish U.S. market conditions while many foreign investors, leading players in the Tokyo market, were sitting on the fence. “Japanese individual investors were acting on their own,” he added.
Another brokerage official noted that a wait-and-see mood was enhanced ahead of earnings announcements by major U.S. firms and others later in the week.
Investors would remain news-hungry before the Oct. 26 start of the extraordinary session of the Diet, said Kazuo Kamitani, Nomura Securities Co.’s senior associate at the Investment Research & Investor Services Department.
On the TSE’s first section, decliners outnumbered gainers 1,276 to 815 with 88 issues unchanged. Volume dropped to 850 million shares from Friday’s 1.013 billion shares.
Industrial robot-maker Yaskawa Electric Corp., closely watched as a China-related stock dived 5.43% as its first-half earnings, released Friday, failed to meet market expectations.
Restaurant chain Yoshinoya Holdings Co. also sank on dismal earnings results.
Another robot producer Fanuc Corp. and drugmaker Daiichi Sankyo Co. fell as well.
On the other hand, electronics retailer Bic Camera Inc. gained after releasing earnings suggesting a stable recovery from a coronavirus crisis-caused slump.
Among other winners are technology investor SoftBank Group Corp. and medical information provider M3 Inc.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average fell 50 points to end at 23,520.