This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks ended lower Tuesday as shares of export-oriented companies were hit with the yen strengthening against the U.S. dollar.
The 225-issue Nikkei Stock Average ended down 221.59 points, or 0.75 percent, from Monday at 29,285.46. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 16.45 points, or 0.81 percent, lower at 2,018.77.
Decliners were led by textile and apparel, electric machinery, and transportation equipment issues.
The U.S. dollar fell into the upper 112 yen range for the first time in around a month as lower Tokyo stocks prompted investors to seek out the perceived safety of the yen, dealers said.
At 5 p.m., the dollar fetched 112.84-86 yen compared with 113.17-27 yen in New York and 113.56-57 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1595-1597 and 130.84-88 yen against $1.1581-1591 and 131.18-28 yen in New York and $1.1559-1560 and 131.27-31 yen in Tokyo late Monday afternoon.
The yield on the benchmark 10-year Japanese government bond inched up 0.005 percentage point from Monday's close to 0.060 percent, tracking an overnight rise in U.S. counterparts.
Stocks were initially higher, tracking overnight record highs in New York shares after the House of Representatives passed U.S. President Joe Biden's $1 trillion infrastructure plan.
But the market was top-heavy in the morning as heavyweights such as SoftBank Group Corp. lifted the Nikkei index closer to the psychological threshold of 30,000. The benchmark fell into negative territory in the afternoon, extending losses as the yen continued to strengthen, while a fall in U.S. futures further weighed on shares.
"The U.S. infrastructure plan lifted domestic iron and steel issues, although the lack of positive cues in Japan, including a firmer yen, hurt investor sentiment," said Shingo Ide, chief equity strategist at the NLI Research Institute, adding that some investors locked in profits when the 30,000 line came into sight.
A recent rise in raw material prices has also fueled concerns that the upward trend may squeeze corporate profits, slowing down the pace of economic recovery, he said.
Some exporters were hit by the yen's advance, with Canon shedding 42.0 yen, or 1.6 percent, to 2,563.5 yen, while Hitachi declined 93 yen, or 1.3 percent, to 7,018 yen. Mazda Motor sank 14 yen, or 1.4 percent, to 1,013 yen.
Iron and steel issues were among shares bucking the downward trend. Nippon Steel gained 6.5 yen, or 0.3 percent, to 1,924.5 yen, and JFE Holdings grew 15 yen, or 1.0 percent, to 1,515 yen.
SoftBank Group soared 647 yen, or 10.5 percent, to 6,808 yen, following the company's announcement Monday that it would buy back shares worth 1 trillion yen after reporting an 80.7 percent drop in net profit in the fiscal first half through September.
Yamaha Motor advanced 60 yen, or 2.0 percent, to 3,110 yen, a day after the manufacturer reported upbeat earnings results for the January-September business period and revised upward its outlook for the year through December.
On the First Section, declining issues outnumbered advancers 1,719 to 400, while 64 ended unchanged.
Trading volume on the main section fell to 1,199.55 million shares from Monday's 1,231.79 million shares.
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