TOKYO: Tokyo stocks slipped 0.25 percent Tuesday after a Federal Reserve official hinted that the US central bank could announce a winding down of its stimulus programme as early as next week.
The benchmark Nikkei 225 index, which soared 2.29 percent Monday, edged down 38.90 points to 15,611.31, while the Topix index of all first-section shares ended flat, inching up 0.08 percent, or 1.01 points to 1,256.33.
James Bullard, the president of the Fed's St. Louis branch, said in a speech that "a small taper" of the $85 billion a month asset-purchase programme might be a possibility as policymakers wrestle with how to respond to signs of improvement in the world's biggest economy.
A strong third-quarter growth report and surprisingly upbeat November jobs data last week boosted speculation the Fed may start reeling in its stimulus scheme after a policy meeting next week.
The stimulus has been credited with buoying global equity markets since it was introduced last September.
In currency trading, the dollar bought 103.29 yen, from 103.28 yen in New York on Monday.
The US unit has been rising for weeks on expectations of Fed tapering, which would reduce the number of dollars in the financial system, boosting demand.
"Amid uncertainties surrounding a pullback of the Federal Reserve's monetary easing, investors are hesitant to pursue exporters," Shun Maruyama, chief equity strategist at BNP Paribas, told Dow Jones Newswires.
"Domestic demand-driven shares are generating interest," he added.
Automaker Honda's stock slipped 1.04 percent to 4,250 yen while Sony lost 1.93 percent to 1,826 yen.
Real estate firms rose with Mitsui Fudosan up 1.48 percent to 3,415 yen and Mitsubishi Estate adding 2.18 percent to 2,808 yen. (AFP)
