Tokyo stocks close down 0.71pc

June 25, 2014 - 12:58:48 pm

TOKYO: Tokyo stocks closed 0.71 percent lower Wednesday, tracking losses on Wall Street where profit-taking emerged to take advantage of recent record-breaking rises.

The Nikkei 225 index lost 109.63 points to 15,266.61, while the Topix index of all first-section issues fell 0.60 percent, or 7.67 points, to 1,260.83.

"Stocks are long overdue for consolidation," said CSLA equity strategist Nicholas Smith.

He downplayed any link between the day's drop and Prime Minister Abe's speech late Tuesday on economic revitalisation.

"Most of what was said had long been factored into the market, including general talk of cutting corporate taxes and boosting public pension fund investment in stocks," he told Dow Jones Newswires.

Traders will just have to wait to find out the details, he said.

Nomura Securities research analyst Shuichi Obata said: "The debate over offsetting revenues for a reduction in the corporation tax remains unclear."

Abe unveiled a fresh round of reforms Tuesday, in the latest bid to cement a fragile recovery, his second attempt to fire the "third arrow" of his economic action plan.

In the heavily trailed package, he promised to slash Japan's corporate tax rate -- one of the world's highest at up to 36 percent -- and tackle sectors long sheltered by the state.

Shares in Nintendo dropped 1.88 percent to 12,210 yen after president Satoru Iwata said he would skip an annual shareholders' meeting set for Friday as he had undergone surgery last week to remove a growth in his bile duct.

Toyota closed down 0.06 percent at 5,957 yen after the auto giant announced it would start selling its first fuel cell sedan this financial year, with a price tag of around 7 million yen ($70,000).

On Tuesday, the Dow tumbled 0.70 percent despite solid economic data.

The dollar was at 101.91 yen in Tokyo afternoon trade on Wednesday, compared with 101.98 yen in New York Tuesday afternoon. (AFP)