Tokyo stocks close lower ahead of central bank decisions

TOKYO: Tokyo's main stock market closed slightly lower Tuesday, snapping a three-day winning streak as investors kept a close eye on central bank policy decisions this week.

The benchmark Nikkei 225 index lost 0.32 percent, or 72.56 points, to close at 22,866.17, while the broader Topix index was up 0.10 percent, or 1.74 points, at 1,815.08.

Analysts said investors were cautious ahead of central bankers' policy decisions due later this year, but "there is some more room for prices to rise," Rakuten Securities said in a client note.

"Investors took profits after three days of rallies," SBI Securities said in a commentary.

The European Central Bank will hold a policy meeting on Thursday while the US Federal Reserve is due to announce its latest interest rate decision on Wednesday.

Most analysts expect the Fed will hike rates but they will scrutinise what central bank chief Janet Yellen has to say about the timetable for future increases.

Banks were higher on the prospects that a new set of international regulations dubbed Basel III could have less of an impact on the sector than expected, dealers said.

Mitsubishi UFJ jumped 2.25 percent to 812.8 yen, and its rival Sumitomo Mitsui Financial rose 1.98 percent to close at 4,827 yen.

Struggling conglomerate Toshiba ended up 1.66 percent at 306 yen following reports it had agreed to settle a dispute with US partner Western Digital over the sale of its memory chip business.

Central Japan Railway was down 1.06 percent at 225 yen amid reports of a bid-rigging scandal over its Maglev train-related project.

The dollar fetched 113.45 yen in Asian trade, down slightly from 113.56 yen in New York rate late Monday.