TOKYO, July 22 ― Tokyo stocks closed lower today as investors locked in profits ahead of a four-day holiday weekend in Japan.
The key Nikkei 225 index fell 0.58 per cent, or 132.61 points, to end at 22,751.61 while the broader Topix index lost 0.62 per cent, or 9.78 points, to 1,572.96.
“Mixed moves in US stocks and a stronger yen weighed on sentiment,” said Yoshihiro Ito, chief strategist at Okasan Online Securities.
“Profit taking led trade ahead of the consecutive holidays,” he said in a note.
On Wall Street yesterday, the blue-chip Dow Jones average rose but the tech-heavy Nasdaq retreated from its record.
European stocks were broadly higher along with the euro as EU leaders clinched an agreement on what they boasted was a historic rescue plan.
The agreement boosted European bourses and also lifted the euro to its highest level against the dollar since early 2019.
The yen also rose against the dollar, a negative development for Japanese exporters.
The greenback was changing hands at ¥106.83 (RM4.25) in Tokyo afternoon trade, a shade higher than ¥106.77 in New York yesterday afternoon but still sharply lower than the ¥107 levels seen on Monday.
The euro remained strong, buying US$1.1526 compared with and US$1.1522 in New York.
Following yesterday's approval of the euro fund, “rotation out of US and into European stocks might be a theme that establishes legs in coming weeks,” said Ray Attrill, head of forex strategy at National Australia Bank.
“A new point of focus for market now is the 'cliff edge' that the US faces as early as this weekend” when the US$600 weekly unemployment benefit paid under the Pandemic Unemployment Assistance is due to expire, he said in a commentary.
In Tokyo stocks trade, selling hit high-tech stocks with microchip-testing equipment maker Tokyo Electron falling 0.46 per cent to ¥29,660.
Oil explorer Inpex rose 2.83 per cent to ¥663.9 on petroleum prices.
Toyota closed down 0.67 per cent at ¥6,729 after giving up early gains on news that the auto giant's domestic production will recover in August. ― AFP
