Tokyo shares erase all gains since start of the year

TOKYO: Tokyo's main indexes ended lower Friday, erasing all of their gains since the start of the year, hit by concerns about US President Donald Trump's policies and the populist march in Europe.

The benchmark Nikkei 225 index lost 0.81 percent, or 153.96 points, to end the day at 18,909.26, slipping 1.83 percent over the week.

The broader Topix index of all first-section issues fell 0.98 percent, or 14.99 points, to 1,512.60, dropping 2.03 percent over the past week.

Trump's business-friendly pledges, including tax cuts and big infrastructure spending, set off a global equities rally in November.

But his failure to pass a replacement for Obamacare last Friday -- despite his Republican party controlling Congress -- has sowed doubts about his credentials as a dealmaker and whether he can push through his agenda.

A Federal Reserve rate hike boosted the dollar against the yen -- a plus for Japanese shares -- but investors are keeping a wary eye on the hotly contested French presidential elections and the rise of far-right political parties across Europe. Germany and Italy are due to hold elections this year, with anti-Europe groups polling impressively.

The dollar was at 111.87 yen, against 111.86 yen in New York, but well down from the levels above 112 yen seen earlier in the day.

On Friday, the Nikkei spent most of the day in positive territory before ending lower, as investors squared positions on the last day of Japan's financial year.

"The market is looking at the end of the fiscal year and seeing no fresh news. It's hard for investors make moves," said Makoto Sengoku, market analyst at Tokai Tokyo Research Centre.

The Bank of Japan's Tankan business confidence survey and the official start of earnings season will be key trading cues for investors next week.

On Friday, Toshiba jumped 5.78 percent to 241.4 yen after the Nikkei business daily said US private-equity firm Silver Lake Partners and American chipmaker Broadcom are believed to have offered roughly 2 trillion yen to buy the troubled Japanese giant's prized memory chip business.

The price is at the high end of estimates for a spin-off that would help Toshiba raise cash to offset massive losses at its US nuclear power unit Westinghouse.

Separately, Japan's top-selling Yomiuri newspaper reported that about ten firms, including Apple, are thought to be vying for the jewel in Toshiba's crown.

Bank Mitsubishi UFJ Financial gave up earlier gains to end 1.00 percent lower at 699.7 yen. Rival Sumitomo Mitsui Financial fell 1.63 percent to 4,045 yen.

Toyota fell 1.13 percent to 6,042 yen and Honda dropped 1.30 percent to 3,351 yen.