Tokyo stocks end lower on profit-taking

TOKYO stocks snapped a four-day winning streak to close lower on Monday (Mar 25), as investors took profits after the key Nikkei index hit record highs last week.

The benchmark Nikkei 225 index lost 1.2 per cent, or 474.31 points, to end at 40,414.12, while the broader Topix index dropped 1.3 per cent, or 35.58 points, to 2,777.64.

“Profit-taking was dominant in Tokyo after falls of the Dow index, amid widespread caution over the rapid rise (of the Nikkei index),” IwaiCosmo Securities said.

The US dollar fetched 151.24 yen in Asian trade, against 151.40 yen in New York on Friday.

Japanese finance ministry currency diplomat Masato Kanda on Monday hinted at potential intervention in the currency market, referring to the yen’s depreciation after the Bank of Japan raised interest rates but indicated monetary easing conditions would continue.

“Clearly there are speculative actions behind the current cheapness of the yen,” he told reporters.

“We can’t tolerate excessive movement based on speculation, which has a huge negative effect on the national economy,” he added.

“We will take appropriate measures against excessive movement without ruling out any means.”

Carmakers were lower, with Toyota falling 1.1 per cent to 3,830 yen and Honda plunging 2.2 per cent to 1,879 yen.

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Nissan dropped 2.1 per cent to 629 yen. After the closing bell, the auto giant announced a new global target of selling one million more vehicles annually in three years.

Uniqlo operator Fast Retailing slid 0.6 per cent to 47,130 yen and Sony Group tumbled 3 per cent to 13,050 yen. AFP