TOKYO: Tokyo stocks plunged 0.86 percent Thursday on profit-taking, losing a five day winning streak as the dollar’s rally against the yen ran out of steam.
The Nikkei 225 index at the Tokyo Stock Exchange lost 144.84 points to finish at 16,792.48, while the Topix index of all first-section shares fell 1.12 percent, or 15.41 points, to 1,356.35.
But the benchmark Nikkei gave up its early gains by the close on profit-taking as the dollar retreated after hitting a fresh seven-year high above 115 yen.
The greenback was back at 114.48 yen in afternoon Tokyo trade, down from 114.69 yen in New York.
The Japanese unit had been tumbling since the Bank of Japan said Friday it would widen its already huge stimulus programme that effectively prints new money.
The dollar was given added impetus by news that Republicans had taken control of both houses of the US Congress in mid-term elections, fuelling hopes for pro-business policies and an end to years of gridlock on Capitol Hill.
In Tokyo Thursday Toyota rose 0.05 percent to 6,812.0 yen, hitting a seven-year high, after the world’s biggest automaker said Wednesday it was on track for a record $17.5 billion full-year net profit.
Copier and camera maker Canon lost 0.07 percent to 3,531.5 yen, Uniqlo clothing chain operator Fast Retailing fell 0.50 percent to 42,235.0 yen, while Sony was down 3.39 percent at 2,231.0 yen.
