Tokyo stocks finish lower despite stimulus package boost

TOKYO, Nov. 18 (Xinhua) -- Tokyo stocks finished slightly lower on Thursday as energy and technology firms dragged down the market, though the benchmark Nikkei index briefly turned positive in reaction to a report about Japan's bigger-than-expected economic stimulus package to be unveiled the next day.

The 225-issue Nikkei Stock Average finished 89.67 points, or 0.30 percent, lower from Wednesday at 29,598.66.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange closed 2.82 points, or 0.14 percent, lower at 2,035.52.

Trading volume on the main section increased to 1,220.40 million shares from Wednesday's 1,173.39 million shares.

By the close of play, mining, marine transportation, and oil and coal product sectors led the decline. Losing issues outnumbered gaining ones 1,314 to 770 on the First Section, while 99 finished unchanged.

Tokyo stocks opened low in the morning and moved in negative territory throughout most of the day. However, after a news report stating that Japan's economic stimulus package will be 55.7 trillion yen (488 billion U.S. dollars) on a fiscal expenditure basis, both indexes jumped into the positive range briefly in the afternoon.

However, shares still closed down, as market sentiment remained low as oil, technology, and some large-cap firms declined.

The amount of stimulus package considerably surpassed the amount reported earlier and surprised the market participants who had been closely monitoring the developments, brokers said.

Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co., said, "Investors quickly reacted positively to the report as the amount was much larger than market expectations."

He added "The market saw a pile of negative trading cues today, such as profit-taking in semiconductor issues after their U.S. peers fell and a tumble in Eisai Co."

Pharmaceutical firm Eisai sank 9.0 percent after European regulators voted against approving its Alzheimer's drug jointly developed with U.S. biotech giant Biogen Inc.

After U.S. crude oil futures decreased to a one-month low overnight, oil explorer Inpex and refiner Eneos Holdings dropped 7.1 percent and 3.5 percent, respectively.

Technology stock also faced selling, with chip silicon wafer manufacturer Sumco falling 1.1 percent and chip test system maker Advantest ending down 2.7 percent.