TOKYO: Tokyo stocks closed 0.33 per cent lower, hit by a firm yen and concern over bailout talks between Greece and its creditors.
The Nikkei 225 index at the Tokyo Stock Exchange sank 59.25 points on Tuesday to 17,652.68, while the Topix index of all first-section issues edged up 0.20 per cent, or 2.80 points, to 1,427.72.
Trading was slow ahead of a national holiday Wednesday.
“There’s nothing particularly surprising about the details of the negotiations between Greece and the European Union,” said Ryuta Otsuka, a strategist at Toyo Securities.
“But the conflict between one side asking for a debt reduction and the other side seeking full repayment are weighing heavily on sentiment,” he told Bloomberg News.
Greek Prime Minister Alexis Tsipras vowed over the weekend to stand by his anti-austerity electoral promises, raising worries the country will default on its 315 billion euro ($A457.02 billion) debt repayments.
German Chancellor Angela Merkel said on Monday she awaited a “sustainable” proposal from Greece that respected the “basic rules” of the bailout program as set by international lenders.
With the two sides at loggerheads US and European markets sank.
The yen edged up against the US dollar as investors looked for safety, while a greenback rally fuelled by Friday’s strong jobs report faded.
The US dollar slipped to Y118.52 from Y118.64 in New York Monday afternoon.
Fast Retailing, the operator of Uniqlo clothing outlets, fell 1.13 per cent to Y43,435.0 and Showa Shell eased 1.28 per cent to Y1,159 while Tokyo Electron slipped 3.58 per cent to Y8,234.
However, Nissan rose 3.80 per cent to Y1,104.5 after the car maker raised its full-year net profit forecast, while Sony added 0.31 per cent to Y3,073.5.
“There’s increasing concern that corporate earnings won’t be as good as hoped,” said Koichi Kurose, chief market strategist at Resona Bank.
“But macro data should start to get better, and while it isn’t being priced into stocks yet, there’s the expectation that earnings will improve.
“So it’s not like stocks are going to head down from here either,” he said.
