TOKYO: Tokyo stocks closed 1.04 percent lower Wednesday, weighed by a stronger yen and falls in Shanghai fuelled by lingering fears about a Chinese liquidity crisis.
The benchmark Nikkei 225 index lost 135.33 points to 12,834.01, while the Topix index was down 0.87 percent, or 9.38 points, to 1,069.28.
"Jitters over Chinese banking liquidity continue to rattle investors," said an equity analyst at a foreign brokerage.
China's central bank said it had provided money to some firms on Tuesday to ease a cash crunch that has gripped the country's financial markets and raised concerns about the economy.
The move by People's Bank of China came just a day after it ruled out providing fresh cash and ordered banks to put their financial houses in order.
"Investors are now highly sensitive to risks," Yoshihiro Okumura, general manager for research at Chibagin Asset Management, told Dow Jones Newswires.
"The Nikkei's fall under 13,000 should entice dip-buying, but until Chinese markets stabilise, active buy backs will be limited."
Tokyo stocks had opened 1.41 percent higher on Wednesday morning following a rally on Wall Street.
The Dow Jones Industrial Average gained 0.69 percent to 14,760.31, helped by data showing more strength and confidence in the US economy.
New orders for durable goods surged 3.6 percent in May on the back of strong aircraft sales, and housing prices added a huge 2.5 percent in one month. Consumer confidence also jumped in May.
The data initially boosted the dollar past the 98-yen mark Wednesday before it fell back to 97.45 yen in mid-afternoon trade.
In Tokyo stock trading, SoftBank jumped shortly after the opening bell, but ended down 0.18 percent at 5,420 yen, after shareholders in US mobile carrier Sprint approved a $21.6 billion takeover by the Japanese firm.
Electronics maker Sharp also gave up earlier gains to end 3.50 percent lower at 386 yen.
Toyota finished up 0.53 percent at 5,700 yen while Sony advanced 1.41 percent to 2,001 yen. (AFP)
