This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks ended slightly lower after directionless trading Wednesday, as many investors took to the sidelines ahead of the House of Councillors election on the weekend and the start of the earnings season later this month.
The 225-issue Nikkei Stock Average fell 14.62 points, or 0.04 percent, from Tuesday at 39,663.40. The broader Topix index finished 5.91 points, or 0.21 percent, lower at 2,819.40.
On the top-tier Prime Market, decliners were led by real estate, pulp and paper and securities house issues.
The U.S. dollar remained firm in Tokyo on Tuesday, briefly hitting a three-month high of 149.19, as stronger-than-expected June inflation data dampened expectations of interest rate cuts by the Federal Reserve, dealers said.
At 5 p.m., the dollar fetched 148.88-90 yen compared with 148.79-89 yen in New York and 147.73-75 yen in Tokyo at 5 p.m. Tuesday.
The euro was quoted at $1.1618-1619 and 172.98-173.02 yen against $1.1595-1605 and 172.65-75 yen in New York and $1.1689-1691 and 172.69-73 yen in Tokyo late Tuesday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.570 percent, down 0.015 percentage point from Tuesday’s close, but demand for debt remained lackluster as fears linger over possible fiscal deterioration driven by populist economic policies.
Stocks swung between positive and negative territory throughout the day amid growing caution as recent media polls have shown that the ruling parties are facing an uphill battle in Sunday’s election and could lose their majority in the upper house, brokers said.
“The Nikkei’s 40,000 mark has been perceived by investors as a psychological barrier over the past two weeks,” said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.
“It’s difficult for investors to keep buying ahead of the major events, with the earnings season starting after the upper house election,” she said.
Meanwhile, heavyweight semiconductor-related shares drew buying after major Dutch chip equipment maker ASML Holding N.V. released solid earnings in the afternoon.
AloJapan.com