This May 7, 2020 file photo shows the Tokyo Stock Exchange. (Mainichi)

       TOKYO (Kyodo) -- Tokyo stocks ended lower Wednesday on the yen's firmness against the U.S. dollar and worries over China's economic outlook, while investors expected the Japanese government's plan for cash handouts to ease the fallout of the coronavirus pandemic to have only a limited effect.

       The 225-issue Nikkei Stock Average ended down 178.68 points, or 0.61 percent, from Tuesday at 29,106.78. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 10.81 points, or 0.54 percent, lower at 2,007.96.

       Decliners were led by rubber product, air transportation, and iron and steel issues.

       The dollar remained weak in the upper 112 yen range, its lowest level in a month, as investors sold the currency on speculation the interest rate gap between the United States and Japan would narrow following a fall in U.S. Treasury yields, dealers said.

       Tokyo shares were in negative territory for most of the day and extended losses in the afternoon after rising inflation in China fueled uncertainty over the world's second-largest economy, which has already shown signs of slowing growth, brokers said.

       China's producer price index in October increased at its fastest pace on record, surging 13.5 percent from a year earlier, due largely to a spike in global raw material prices, government data showed Wednesday.

       Domestic factors, including the Japanese ruling coalition agreeing to distribute cash and vouchers worth 50,000 yen each to households with those aged 18 and younger, did little to help the market, with the planned measure seen as unlikely to lift overall consumption, brokers said.

       "Even if the coupon was intended to prompt spending, its scope will only be related to parenting and the impact on consumption will not be widespread. The measures are unlikely to improve market sentiment," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.

       Yamaguchi said the growth strategies of Prime Minister Fumio Kishida's government were a "deja vu" of former Prime Minister Yoshihide Suga, adding they are unlikely to significantly improve foreign investors' view of the Japanese economy.

       Kishida was re-elected Wednesday as prime minister in a special parliamentary session after his party secured a majority in the House of Representatives election on Oct. 31.

       On the First Section, declining issues outnumbered advancers 1,213 to 873, while 97 ended unchanged.

       Some issues with large exposure to the Chinese market fell, with trading house Itochu dropping 98 yen, or 2.9 percent, to 3,314 yen, cosmetics maker Shiseido sliding 117 yen, or 1.5 percent, to 7,589 yen and toilet manufacturer Toto slipping 80 yen, or 1.5 percent, to 5,340 yen.

       Bucking the downward trend, child-rearing-related issues rose on hopes that their businesses could benefit from the stimulus measures.

       Babysitters dispatching service provider Poppins Holdings jumped 250 yen, or 7.0 percent, to 3,815 yen, while baby goods maker Pigeon climbed 54 yen, or 2.3 percent, to 2,454 yen.

       Trading volume on the main section fell slightly to 1,153.29 million shares from Tuesday's 1,199.55 million shares.

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