Tokyo stocks ended lower Tuesday as markets took a breather following a string of recent gains that propelled the benchmark index to its highest level in 11 months. Japanese shares advanced last week as the yen tumbled against the dollar on expectations that US interest rates will rise under President-elect Donald Trump's administration.
"Japanese stocks have been having a good run on the Trump rally, but there's a sense of needing to calm down a little," said Mitsuo Shimizu, a deputy general manager at Japan Asia Securities Group Ltd.
"The market has been rising entirely on expectations, but US stocks are lower, the weakening yen has taken a breather and it's difficult for Japanese stocks to keep rising on their own," he told Bloomberg News. The Nikkei 225 fell 0.27 percent, or 49.85 points, to close at 18,307.04, while the Topix index of all first-section issues edged down 0.07 percent, or 1.01 points, to 1,468.57.
The Nikkei also declined on Monday, which ended a seven-session winning streak. Wall Street stocks retreated Monday, ending a four-day streak of record closes for the blue-chip Dow Jones Industrial Average, as nervousness over the holiday shopping season hit shares of leading retailers. In Tokyo, market heavyweight SoftBank fell 0.40 percent to 6,675 yen, while Fast Retailing, the operator of Uniqlo clothing stores, dropped 2.56 percent to 40,200 yen. Toyota fell 0.19 percent to 6,640 yen, but Nintendo edged up 0.07 percent to 27,990 yen. An outbreak of avian flu at Japanese poultry farms sent protective mask maker Daiwabo soaring 5.74 percent to 313 yen.