Tokyo stocks close lower on profit-taking

TOKYO: Tokyo stocks closed lower on Thursday as investors locked in profits after four days of rallies partly fuelled by positive earnings reports.

The benchmark Nikkei 225 index dropped 1.06 percent, or 292.29 points, to end at 27,241.31 while the broader Topix index closed down 0.86 percent, or 16.64 points, at 1,919.92.

The dollar fetched 114.50 yen, against 114.42 yen on Wednesday in New York.

Market players “locked in gains after a four-day winning streak even though some brisk Japanese corporate earnings reports have been announced” in the past few days, Ichiro Asai, senior strategist of Daiwa Securities, said in a commentary.

Investors are increasingly cautious ahead of key US payrolls data later this week, which “may show a month-on-month decline” in the headline figure of payrolls, Resona Bank said in a note.