Tokyo's stocks extend losses to sixth straight day

TOKYO: Tokyo stocks closed sharply lower on Wednesday, with the key index extending its losing streak to a sixth straight day as traders continued to cash in recent gains.

The benchmark Nikkei 225 index fell 1.57 percent, or 351.69 points, to 22,028.32 while the broader Topix index ended down 1.96 percent, or 34.86 points, at 1,744.01.

"Investor sentiment has weakened after the recent fast-paced rises," which brought the key Japanese index to a quarter-century high last week, said Toshihiko Matsuno, chief strategist at SMBC Friend Securities.

"The market needs a bit of correction, it's time for profit taking," he told AFP.

Negative factors weighing on the market included slower Chinese factory output, a possible delay in US tax reform and tumbling oil prices.

"In the latest market rally, investors had been biased toward optimism over global growth," said Mitsushige Akino, an executive officer with Ichiyoshi Asset Management.

"The pullback in oil prices has reminded investors of the negatives, like how it will likely take a protracted period for growth to pick up," he told Bloomberg News.

Investors were unfazed over Japanese data showing the world's third largest economy notched up its seventh straight quarter of economic growth.

Japan's economy grew 0.3 percent in the third quarter, marking the longest string of gains for more than 16 years, although the rate of expansion slowed from 0.6 percent in the preceding three months.

The dollar was trading at 113.21 yen against 113.43 yen in New York.

Sony fell 2.46 percent to 5,095 yen and Toyota lost 2.41 percent to 6,960 yen.

Oil explorer Inpex dropped 3.64 percent to 1,282 yen and Japan Petroleum Exploration tumbled 4.23 percent to 2,422 yen.

Kobe Steel, hit by a quality data-faking scandal, fell 3.99 percent to 1,058 yen as the company said it would spend 10 billion yen on measures to prevent a recurrence.