Tokyo stocks end flat on late profit-taking
September 11, 2013 - 9:39:33 am
TOKYO: Tokyo stocks ended flat Wednesday as late profit-taking erased early gains, after a strong two-day rally driven by upbeat Chinese economic data and Japan's winning bid to host the 2020 Olympics.
The Nikkei 225 index edged up 1.71 points to 14,425.07, while the Topix index of all first-section shares slipped 0.08 percent, or 0.97 points, to 1,189.25.
"It is natural for investors to cash in following such sizeable gains particularly in the construction sector for the past two days," said Toshikazu Horiuchi, a broker with IwaiCosmo Securities.
"But trading sentiment is not so bad as economic indicators around the world are showing positive signs in general."
A strong dollar also limited the impact of the profit-taking, dealers said.
The greenback bought yen in afternoon trade, compared with 100.40 yen New York but well up from levels around 99.60 yen in Tokyo on Tuesday. A weaker yen tends to lift exporters' shares as it makes them more competitive overseas.
Canon fell 0.47 percent to 3,165 yen, Uniqlo clothing chain operator Fast Retailing was unchanged at 34,750 yen and Toyota added 0.63 percent to 6,340 yen.
Wall Street provided a strong lead thanks to another batch of upbeat Chinese economic data and easing concerns over Syria.
The Dow added 0.85 percent.
China's industrial production rose at its fastest pace in 17 months in August, the latest in a series of better-than-expected indicators pointing to a pick-up in the world's second-largest economy.
US President Barack Obama has said he would aim for a diplomatic solution over claims Syria used chemical weapons on civilians, easing fears over an imminent military strike. (AFP)