TOKYO: Tokyo stocks closed lower on Thursday as investors locked in profits following falls on Wall Street.
The benchmark Nikkei 225 index lost 0.96 percent, or 280.63 points, to 28,942.14, while the broader Topix index ended down 0.82 percent, or 16.49 points, at 1,990.50.
“Japanese shares are seen declining on profit-taking after the Nikkei index climbed above the 29,000 mark on Wednesday,” while US losses also weighed on the market, Mizuho Securities said.
Wall Street shares ended down, despite some positive sentiment provided by the minutes from July’s Federal Reserve meeting, which revealed that some policymakers recognised the risks of overly aggressive rate hikes.
But overall, the US central bank remained committed to further raising interest rates to fight inflation, the minutes said.
“The Fed’s minutes hinted at a slower pace of rate hikes, which pushed up US shares, but US shares eventually ended down because some Fed members are opposed to the idea,” said Kentaro Hayashi, senior strategist of Daiwa Securities.
“Negative US retail sector reports and worries over inflation in Europe weighed on the market,” he added.
The dollar stood at 135.28 yen in late Asian trade, against 135.08 yen on Wednesday in New York.
Tokyo stocks close higher as yen loses value
Industrial robot maker Fanuc closed down 1.85 percent at 24,075 yen, and Sony Group declined 1.76 percent to 11,750 yen.
Companies that make high-precision equipment were among losers. Olympus fell 2.33 percent to 3,015 yen and medical device manufacturer Terumo retreated 2.31 percent to 4,615 yen.
However, Nintendo gained 0.91 percent to 60,690 yen on hopes for strong sales in the year-end shopping period, after a report said its Switch console will have smaller casing – interpreted as a sign of increased exports by air, Hayashi of Daiwa Securities said.
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