Tokyo stocks end down on stronger yen, profit locking in

TOKYO, Nov. 8 (Xinhua) -- Tokyo stocks finished lower on Monday as market investors locked in the recent gains, following the stock market surging to its highest level in more than a month last week and the yen strengthening against the U.S. dollars.

The 225-issue Nikkei Stock Average closed 104.52 points, or 0.35 percent, lower from Friday at 29,507.05.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange ended 6.20 points, or 0.30 percent, lower at 2,035.22.

Trading volume on the main section decreased to 1,231.79 million shares from Friday's 1,266.64 million shares.

Tracking record highs in the U.S. market late last week after higher-than-expected U.S. job data released on Friday, Tokyo stocks opened high in the morning but later fluctuated narrowly in negative territory through most of the day. The U.S. dollar against the Japanese yen was weaker in the upper 113 yen range.

Yutaka Miura, a senior technical analyst at Mizuho Securities Co., said "the market became top-heavy as the Nikkei neared the 30,000 mark, while downbeat U.S. stock futures and a drop in the Hang Seng index also weighed on the market."

"Hopes have risen for the normalization and reopening of economic activity as COVID-19 cases drop and deaths reach zero," he added.

Japan reported no deaths from COVID-19 on Sunday for the first time in about 15 months, while a total of 162 new infections were confirmed nationwide. About 73 percent of Japan's entire population have been fully vaccinated, according to the government.

By the close of play, iron and steel, construction and electric machinery sectors were major decliners. Losing issues outnumbered gaining ones 1,276 to 804 on the First section, while 103 finished unchanged.

Some export-related stocks faced selling on the stronger yen, brokers said. Among them, Sony Group slipped 0.4 percent, Panasonic fell 0.7 percent, and Honda Motor dropped 3.3 percent after it released Friday a downward revision of its net profit outlook for the current business year through March.

However, benefitted from the downward trajectory in COVID-19 infections, air and land transportation firms rose notably with growing expectations for more movement, with ANA Holdings advancing 4.3 percent, Japan Airlines surging 5.2 percent, and Central Japan Railway, the operator of shinkansen bullet trains between the Tokyo and Osaka business areas, ending up 2.5 percent.

Department stores also gained amid an optimistic COVID-19 situation, with Takashimaya and Isetan Mitsukoshi Holdings rising 1.6 percent and 1.3 percent respectively.