TOKYO: The benchmark Nikkei average slightly fell on the Tokyo Stock Exchange Monday, hit by the yen’s strength against the dollar.
The 225-issue Nikkei average sagged 5.62 points, or 0.03 percent, to end at 22,467.16, after losing 35.25 points on Wednesday. The Tokyo market was closed on Thursday and Friday for national holidays.
After opening slightly higher following a jump in U.S. equities on Friday, the Tokyo market soon sank into negative territory as the yen strengthened against the dollar.
In the afternoon, however, the Nikkei and Topix cut earlier losses, backed by buying on dips, brokers said
The Tokyo market’s recovery in the afternoon was supported by strong speculation that the Bank of Japan was buying exchange-traded funds, said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.
A wait-and-see mood grew among investors ahead of announcements of fiscal 2017 earnings by major Japanese companies this week, he also said.
The Nikkei’s topside was capped by selling on rallies around 22,500, brokers said.
Rising issues outnumbered falling ones 1,212 to 771 in the TSE’s first section, while 100 issues were unchanged.
Volume edged up to 1.48 billion shares from 1.45 billion shares on Wednesday.
Drug maker Daiichi Sankyo attracted purchases after Daiwa Securities on Wednesday maintained its investment rating while revising up its stock target price for the company.
Other major winners included electronics maker Sony and semiconductor-related Tokyo Electron.
