Mar 8, 5:07 AM EST
Tokyo's Benchmark Stock Index Slips
TOKYO (AP) -- Tokyo's benchmark stock index fell Tuesday after investors took profits after an eight-day advance. The U.S. dollar edged higher against the Japanese yen, but lower against the euro.
The Nikkei Stock Average of 225 selected issues lost 38.45 points, or 0.32 percent, to close at 11,886.91 points. The drop in the market's main index came after it had gained a total of 380.18 points, or 3.31 percent, over the previous eight trading days, including Monday's rise of 52.31 points, or 0.44 percent.
The dollar was trading at 105.01 yen at 5 p.m. Tuesday, up 0.12 yen from late Monday in Tokyo but below the 105.16 yen it bought in New York later that day. The dollar traded between 104.94 yen and 105.18 yen in Tokyo.
On the stock market, investors locked in profits after eight consecutive sessions of gains took the benchmark Nikkei to a 10-month high Monday. Investors also grew cautious about the index's continued rise.
Masayoshi Okamoto at Jujiya Securities said Tuesday's retreat in the Nikkei index was "natural," given an eight-day long rally. Investors also were now trying to trim positions ahead of Japan's fiscal-year end at March 31, Okamoto said.
But bargain hunting supported the index's downside around the 11,900-point level as investors still expect the country's economy to improve at a faster pace than previously considered, other traders said.
Technology and export-related blue chips, as well as financial issues fell. Advantest Corp., Kyocera Corp. and TDK Corp. declined, as did Nissan Motor Co. and Isuzu Motors Ltd. Sumitomo Mitsui Financial Group Inc., and Mitsubishi Tokyo Financial Group Inc. were among other losers Tuesday.
The broader TOPIX, which includes all issues on the Tokyo market's first section, shed 4.44 points, or 0.37 percent, to finish Tuesday's trading at 1,195.39 points. The TOPIX added 7.72 points, or 0.65 percent, Monday.
First-section volume fell to 1.806 billion shares, from Monday's 1.983 billion shares. Decliners beat advancers 1,046 to 468, while 131 issues were unchanged.
In New York overnight, the Dow Jones industrial average fell 3.69, or 0.03 percent, to 10,936.86 points.
But the broader stock indicators gained ground. The Standard & Poor's 500 index was up 3.19, or 0.3 percent, at 1,225.31. The Nasdaq composite index gained 19.60, or 1 percent, to 2,090.21.
In other currencies, the dollar was up slightly against the yen in thin trading in Tokyo as investors stood on the sidelines over uncertainty on the U.S. currency's direction.
"Because there is no market consensus, usual currency movers, such as hedge funds, have left the currency market and are now trading in stocks and commodity markets instead," said Masamichi Koike, head of the FX spot trading group of Sumitomo Mitsui Banking Corp.
The euro rose to $1.3242 late Tuesday afternoon in Tokyo from $1.3229 late Monday. Against the yen, the euro rose to 138.98 yen from 138.88 yen.
The yield on Japan's benchmark 10-year government bond fell to 1.4950 percent, from Monday's finish of 1.5000 percent. Its price rose 0.04 point to 100.04.
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