TOKYO: Tokyo stocks closed almost flat, down 0.01 percent on Friday, in directionless trade as caution persisted following Germany's approval for reforms to a crucial EU rescue fund.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange lost 0.94 points at 8,700.29. The Topix index of all first section shares slipped 1.13 points, or 0.15 percent, to 761.17.
The Nikkei index moved in and out of positive territory during the day, ending the volatile July-September quarter down 11.4 percent.
Sentiment had been buoyed by a key political hurdle being cleared in efforts to reform Europe's bailout fund and ease concerns over the eurozone debt crisis.
Germany's approval of the EU's July plan boosted hopes that it would pass in all 17 eurozone states and Europe's leaders would move ahead with a confidence-building second bailout of Greece and strengthen the region's banks.
But analysts warned Germany's vote had mostly been priced in and that despite the sign of progress, political uncertainty remained with Greece waiting to see if its austerity measures were sufficient for the next tranche of bailout funds to be released.
Stocks were also pressured by the yen's appreciation against the euro, hurting export-linked shares, brokers said, after the single currency briefly dipped to the mid-103 yen range in the afternoon.
Technology stocks fell amid a grim outlook among major US chip makers. Tokyo Electron fell 2.73 percent to 3,560 yen.
Automakers were lower, with Honda Motor off 1.41 percent at 2,299 and Toyota Motor sliding 0.51 percent to 2,688.
"The market is tentative ahead of Bank of Japan's Tankan survey next week and US jobs data, after which the focus will gradually turn away from macroeconomic factors towards corporate earnings in the US and Japan," Naoki Fujiwara, fund manager at Shinkin Asset Management, told Dow Jones Newswires before the closing bell.
He predicted that some technology companies and exporters will revise down full-year guidance due to the strong yen and gloomy global economic outlook.
Furukawa Electric was down 5.33 percent at 213 yen after revising down its earnings view in light of a $200 million fine for price-fixing in the United States.
Sumitomo Electric Industries, which is also under investigation by US authorities, was off 8.02 percent at 917 yen.
Copyright AFP (Agence France-Presse), 2011
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