TOKYO: Tokyo shares closed 0.17 percent lower on Tuesday in subdued trading after the yen picked up steam following the announcement by the Bank of Japan last week there would be no fresh stimulus.
After a long weekend, the Nikkei ended down 23.27 points at 13,860.86, while the Topix index of all first-section shares edged up 0.34 percent, or 3.94 points, to 1,165.13.
Japanese financial markets were shut Monday and will be closed again Friday for the Golden Week holiday.
"A weaker dollar from last Friday continues, and that will pose the biggest challenge for stocks in a reduced investor environment," Tatsunori Kawai, chief strategist at kabu.com Securities, told Dow Jones Newswires.
"Recent support for US shares is helpful, but not likely to fully offset the stronger yen effect," he added.
In New York Monday, the Dow rose 0.72 percent and the S&P 500 also climbed 0.72 percent, to a record high on renewed confidence in the eurozone after a government was formed in Italy to end a months-long political stalemate.
In forex trading, the dollar was changing hands at 97.78 yen, up a smidgen from 97.73 yen in New York late Monday.
The dollar is well down, however, from the levels around 99.00 yen seen Thursday before a BoJ policy meeting ended without new policy announcements following this month's massive stimulus programme.
The euro fetched 127.87 yen, down from 128.01 yen.
Stocks were unaffected by the announcement Japan's factory output expanded 0.2 percent in March from the previous month, according to official data released 10 minutes before the opening bell.
It was the fourth consecutive monthly factory output rise as separate figures showed unemployment in March was at 4.1 percent, its lowest in more than four years.
Japan Airlines rose 4 percent at 4,940 yen while rival All Nippon Airways was up 1.43 percent at 212 yen.
After markets closed, JAL said its net profit for the year to March was down 8.0 percent to $1.8 billion. ANA said its fiscal year net profit soared 53.1 percent to $441 million.
Japanese mobile operator Softbank gained 1.15 percent to 4,825.
The company said later annual net profit had slipped 7.8 percent on investment-linked losses, to $2.96 billion. (AFP)
