Tokyo stocks close down 0.85pc

June 10, 2014 - 9:35:11 am

TOKYO: Tokyo shares slipped 0.85 percent Tuesday as profit-taking and a stronger yen erased early gains.

The benchmark Nikkei 225 index shed 129.20 points to finish at 14,994.80, while the Topix index of all first-section shares fell 0.49 percent, or 6.05 points, to 1,228.73.

Trading volume was light with many investors retreating after the Nikkei hit a three-month high on Monday in response to upbeat US jobs figures and an upward revision of Japanese economic growth.

A stronger yen took some air out of exporter shares with the dollar slipping to 102.26 yen from 102.53 yen on Monday in New York.

Nomura Securities equity market strategist Junichi Wako said the market looked increasingly top-heavy and lacked support from a weak yen, which inflates exporters' profitability.

"Still, momentum is providing a base level of buying that is staving off all but very minor selloffs," he told Dow Jones Newswires.

Sony slipped 0.66 percent to closed at 1,647 yen, Toyota fell 1.15 percent to 5,810 yen and Fast Retailing declined 1.56 percent to 34,335 yen, with the Uniqlo clothing chain operator saying it would start raising prices on certain products in Japan.

New York shares gained overnight, with the Dow and the S&P 500 extending record winning streaks.

The Dow rose 0.11 percent to its third straight record close, while the S&P 500 edged up 0.09 percent, hitting an all-time high for the fourth straight session. 

The Nasdaq added 0.34 percent. (AFP)