TOKYO: Tokyo stocks closed down 0.66 percent on Thursday, giving up earlier gains as the yen turned up against the dollar ahead of the Group of Seven (G7) meeting of finance chiefs.
The benchmark Nikkei 225 index fell 94.21 points to 14,191.48 while the Topix index of all first-section issues was down 1.05 percent, or 12.51 points, to 1,181.83.
Tokyo's morning gains came after US shares rose to fresh record highs overnight with surprisingly strong German industrial production data and upbeat Chinese trade figures boosting sentiment, dealers said.
"After the Golden Week holiday season, the Nikkei rose nearly 600 points. The market had to take a breather," said Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking Corp., referring to the just-passed long weekend.
But he added that the bullish trend in Nikkei would likely continue at least until Japan's upper house election in July when Prime Minister Shinzo Abe has a chance to solidify his power base.
The conservative premier's economic-growth policies have been credited with helping lift the Tokyo market since landslide December elections.
Bucking Thursday's downward trend, Sharp shares soared 14.63 percent to 423 yen after Japan's top-selling Yomiuri newspaper said the troubled electronics maker wants to expand a previously announced business tie-up with South Korea's Samsung Electronics.
Toyota closed down 1.36 percent at 5,760 yen, after initially rising as it said Wednesday its full-year net profit more than tripled in the past fiscal year to March.
Tyremaker Bridgestone tumbled 6.58 percent to 3,475 yen while Toshiba was down 4.88 percent to 487 yen on weaker-than-expected financial results.
Sony closed down 1.35 percent at 1,744 yen just before the company announced its first annual net profit in five years, offering a glimmer of hope for the onetime market leader.
In forex trading, the yen was firmer against the dollar in Asia on Thursday with few fresh market leads ahead of the G7 meeting of finance chiefs and central bankers starting near London on Friday.
The dollar eased to 98.70 yen in Tokyo afternoon trade from 99.01 yen in New York on Wednesday.
A strong yen hurts Japanese exporters as it makes their products less competitive abroad and reduces income when repatriated. (AFP)
