Tokyo stocks ended trading Thursday largely flat as initial investor sentiment being boosted by the Cabinet Office, reporting robust machinery orders was offset by concerns the market may be overheating following gains made during a recent winning streak.
The 225-issue Nikkei Stock Average closed the day up 6.38 points, or by 0.03 percent from Wednesday at 19,697.77, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange edged down 1.75 points, or 0.11 percent, to finish the day at 1,593.57.
Local brokers said that while the machinery order data released before the starting bell lifted the market mood and prompted buying in early trade on hopes for increase corporate capital expenditure going ahead, the mood was dampened on fears the market' s recent days of sharp gains may lead to it overheating.
They maintained that the cooling off period would likely be short-lived as the market is being underpinned by broad scale upbeat domestic corporate earnings and hopes the the U.S. will soon hike its key interest rate, in a sign that the world's largest economy is back on a sustainable growth path.
Among the notable advancers at the close were utilities and metal products, but banks and mining-related stocks comprised the day's major decliners. Thursday's turnover was 2,273.8 billion yen (about 18.50 billion U.S. dollars).
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