Tokyo stocks fell Tuesday, snapping a three-day winning streak as investors locked in profits after the recent gains. The benchmark Nikkei 225 lost 1.01 percent or 224.11 points to finish at 21,925.10 while the broader Topix index fell 0.72 percent or 12.70 points to 1,762.45.
"The market staged a fast-paced comeback (from drops earlier in the month), prompting selling for now" to lock in gains, said Makoto Sengoku, market analyst at Tokai Tokyo Research Centre. The yen was holding steady, making exporter shares prone to selling, he said, adding the current strength of the Japanese currency has yet to cause serious concerns.
The dollar was trading at 106.86 yen, up from 106.57 yen in London on Monday but still around its lowest level since late 2016. A strong yen is negative for Japanese exporters as it erodes their profits when repatriated. Carmakers dropped, with Toyota down 1.19 percent at 7,291 yen and Honda off 1.71 percent at 3,785 yen.
Sony ended down 0.16 percent at 5,296 yen after giving up early gains on news that it would team up with major Japanese taxi companies to develop a hailing system using artificial intelligence. Sengoku at Tokai Tokyo said market players were not sure about how exactly the business would be developed. "I believe it's the right direction to go but it's difficult to gauge in figures how much positive impact this move will have on Sony's earnings," he said.
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