TOKYO (Kyodo) — Tokyo stocks ended mixed Tuesday, as gains from banking issues and export-oriented automakers on a weaker yen were trimmed as tech stocks were sold before earnings releases from major companies.
The 225-issue Nikkei Stock Average ended down 157.23 points, or 0.40 percent, from Monday at 39,376.09. The broader Topix index finished 1.84 points, or 0.07 percent, higher at 2,741.52.
On the top-tier Prime Market, gainers were led by transportation equipment and rubber product issues, while top decliners were electric appliance and oil and coal product issues.
The U.S. dollar briefly climbed above the 154 yen line in Tokyo on the view U.S. President-elect Donald Trump’s policies could lead to higher inflation and keep interest rates elevated. But it later retreated as traders sold the dollar to take profits, dealers said.
Stocks were initially higher, led by banks on prospects of higher profits on the back of rising interest rates, while a weaker yen spurred buybacks of recently battered auto issues after some released underwhelming earnings.
But gains were pared in the afternoon on heightened caution in the technology sector as investors awaited earnings reports from semiconductor equipment maker Tokyo Electron Ltd. and tech investor SoftBank Group Corp. after the market close.
“As a whole, recent earnings reports from Japanese firms have not been great, with some companies seeing sluggish growth,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. “The investor moves may have reflected their cautious view over the earnings” of such companies, he added.
Sentiment in the sector also took a hit as news broke that Trump plans to tap China hawk Sen. Marco Rubio as his secretary of state, fueling concerns that the appointment could adversely affect Japanese chip-related companies operating in China, brokers said.