Tokyo stocks drop as investors lock in gains ahead of key events

This photo shows the Tokyo Stock Exchange. (Mainichi)

TOKYO (Kyodo) — Tokyo stocks dropped Tuesday morning as investors continued to lock in gains following last week’s steep rise, amid a reluctance to buy shares before a U.S. monetary policy meeting and other key events.

The 225-issue Nikkei Stock Average fell 374.95 points, or 0.91 percent, from Monday to 40,623.32. The broader Topix index was down 27.78 points, or 0.95 percent, at 2,902.95.

The U.S. dollar traded without clear direction mostly in the upper 148 yen range in Tokyo amid a lack of new incentives, dealers said.

At noon, the dollar fetched 148.34-35 yen compared with 148.49-59 yen in New York and 148.28-30 yen in Tokyo at 5 p.m. Monday.

The euro was quoted at $1.1596-1599 and 172.02-07 yen against $1.1581-1591 and 172.08-18 yen in New York and $1.1674-1675 and 173.11-15 yen in Tokyo late Monday afternoon.

Stocks continued to face selling pressure after the Nikkei jumped last week on a Japan-U.S. trade agreement, with investors awaiting policy meetings of the U.S. and Japanese central banks.

The market was also weighed down by a decline of the U.S. Dow Jones index overnight on caution over U.S.-China trade talks and ahead of earnings reports from some U.S. tech giants this week.