TOKYO (Kyodo) — Tokyo stocks edged lower Monday, as gains on technology buying were pared by investors locking in gains amid caution ahead of upcoming general elections in Japan and the United States.
The 225-issue Nikkei Stock Average ended down 27.15 points, or 0.07 percent, from Friday at 38,954.60. The broader Topix index finished 9.07 points, or 0.34 percent, lower at 2,679.91.
On the top-tier Prime Market, decliners were led by electric power and gas, farm and fishery, and bank shares.
The U.S. dollar briefly fell to the lower 149 yen range in Tokyo, as the currency was sold on profit-taking following its appreciation last week.
Stocks were directionless throughout the day as buying of heavyweight tech issues limited losses from investors taking profits from the Nikkei topping the psychologically-important 40,000 line last week.
But the market faced further downward pressure as a wait-and-see mood prevailed amid a dearth of fresh catalysts, with Japan holding the House of Representatives election on Sunday and the U.S. presidential election scheduled in early November.
Uncertainty about the outcome of Japan’s general election has grown after recent polls and media reports suggested that the ruling Liberal Democratic Party could lose its majority in the powerful lower chamber.
“There is a lot caution in the market, and this is likely one of the reasons why Japanese stocks are struggling to gain momentum despite U.S. stocks remaining firm,” said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Intelligence Laboratory Co.
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