Tokyo stocks fell Friday, succumbing to profit-taking, amid an absence of fresh trading incentives.
The 225-issue Nikkei average of the Tokyo Stock Exchange shed 125.41 points, or 0.44%, to close at 28,631.45. On Thursday, the key index gained 233.60 points.
The Topix index of all first section issues ended 4.00 points, or 0.21%, lower at 1,856.64 after an 11.06-point rise the previous day.
Following a fall in the U.S. Dow Jones Industrial Average futures in off-hours trading, investors on the Tokyo market moved to sell stocks from the outset.
The Nikkei average gave up around 230 points only few minutes after the opening bell.
After cutting losses on buying on dips, both the Nikkei and Topix indexes fluctuated narrowly on the minus side in the afternoon, reflecting mounting profit-taking pressure following the previous day’s advance and position-adjusting selling before the weekend.
Yutaka Miura, senior technical analyst at Mizuho Securities Co., said that the market sentiment was also dampened by falls in other Asian markets.
Meanwhile, some brokers said that market players put active trading on hold in the afternoon ahead of releases of earnings reports by Japanese and U.S. companies next week.
“As there were very few incentives for active buying or selling, investors were waiting to see the moves of U.S. stocks later Friday,” Miura observed.
On the TSE first section, falling issues far outnumbered rising ones 1,416 to 694, while 80 issues were unchanged. Volume rose to 1.217 billion shares from Thursday’s 1.144 billion shares.
Electronic parts supplier Taiyo Yuden, chipmaking gear maker Tokyo Electron and technology investor SoftBank Group met with profit-taking.
Sports goods maker Descente, as well as event-related issues including advertising giant Dentsu and security firm Secom, lost ground following a British newspaper report that the Japanese government is considering canceling the Tokyo Games slated for this summer, hoping to host the event in 2032.
Entertainment giant Sony and drugmaker Chugai also went down.
On the other hand, Shiseido surged 4.43% thanks to the news that the cosmetics maker will sell its personal care goods business to European equity fund CVC Capital Partners.
Capcom rose 3.93% after the game-maker revised up its operating profit forecast for the year ending in March.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average dropped 100 points to end at 28,630.
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