Tokyo shares give up gains, end down

TOKYO: Tokyo's key Nikkei 225 index gave up earlier gains and ended lower Wednesday on profit-taking after a second straight day of Wall Street gains, with fears over US rate policies easing.

The benchmark index ended down 0.03 percent, or 9.24 points, at 28,874.89, while the broader Topix index lost 0.53 percent, or 10.39 points, at 1,949.14.

"The Nikkei surged to the day's high of 29,007 in the morning on the back of gains in US shares and the yen's retreat, " Okasan Online Securities said in a note.

"But a lack of fresh cues discouraged investors from chasing higher prices," it said.

The Nikkei's early gains came after US Federal Reserve Chair Jay Powell stressed at a congressional hearing that most factors pushing prices higher are "areas that are directly affected by the reopening" of the economy after its pandemic-enforced shutdown.

"But profit-taking kicked in as the Nikkei approached 29,000 yen and drove down the overall market," sending it to a level similar to the previous day's close, Okasan said.

The dollar stood at 110.83 yen, against 110.68 yen in New York late Tuesday.

In Tokyo, Nissan lost 0.72 percent at 538.8 yen after a report said it will adjust July production because of a chip shortage, while its bigger rival Toyota fell 1.79 percent at 9,782 yen.

Uniqlo casual wear operator and market heavyweight Fast Retailing surged 2.05 percent to 83,020 yen.

Many high-tech shares were lower, with Sony dropping 2.02 percent at 10,650 yen.