TOKYO: Tokyo stocks closed 0.16 percent lower Tuesday on profit-booking after recent gains prompted by expectations that the yen would continue to weaken and benefit Japanese exporters.
The benchmark Nikkei 225 index, which hit a more than five year high on Monday, ended down 23.79 points to 14,758.42, while the Topix index of all first-section shares eased 0.11 percent, or 1.40 points, to 1,230.80.
Japan's premier bourse has soared in recent months as a new government in Tokyo vows to boost the economy with its hand-picked team at the Bank of Japan unleashing huge monetary easing measures, heaping pressure on the yen.
A weaker yen helps Japanese exporters by making their products more competitive overseas and inflating the value of repatriated foreign income.
"With the Bank of Japan still in the early stages of its monetary easing programme and the US Fed possibly winding down its own plan as signs of economic recovery become more apparent, (Japanese) stocks should continue to rise," said Hiroichi Nishi, SMBC Nikko Securities' general manager of equities.
The Japanese stocks that opened in the positive zone gave up on the gain by the time the market closed, as a slight weakening of the dollar in Tuesday trade has some investors locking in profits.
But "momentum remains positive... and the Nikkei is still on track to reach 15,000 in coming sessions", said Yoshihiro Okumura, general manager Chibagin Asset Management.
In stock trading, Pioneer shares rocketed 25.75 percent to 293 yen after the struggling car electronics maker announced it would receive capital injections from Mitsubishi Electric and mobile carrier NTT DoCoMo.
Reports have said Pioneer was looking for new investors as its biggest shareholder, electronics giant Sharp, eyed the sale of its stake in the firm.
Renesas soared 23.05 percent to 427 yen as investors pushed up the volatile stock on hopes that the worst was over for the struggling chipmaker, which has announced a share sale and a separate capital injection.
The deal calls for Renesas to sell shares to the state-linked Innovation Network Corp. of Japan and top corporate names including Toyota and Panasonic.
In Tokyo forex trade, the dollar bought 101.45 yen, weakening from 101.82 yen in New York on Monday but still stronger than the 99-yen range a week earlier. The euro bought 131.88 yen from 132.11 yen in US trading.
On Monday, US stocks traded largely flat under the shadow of lower-than-expected growth in Chinese industrial output for April and only a slight gain in US monthly retail sales.
The Dow Jones Industrial Average slipped 0.18 percent to 15,091.68. (AFP)
