Tokyo stocks fell for a third straight day Thursday, as a weakening trend in the yen that spurred early buying stalled, leading investors to lock in gains amid concern the market is still overheated after a recent rally.
The 225-issue Nikkei Stock Average ended down 11.58 points, or 0.03 percent, from Wednesday at 35,466.17. The broader Topix index finished 4.29 points, or 0.17 percent, lower at 2,492.09.
On the top-tier Prime Market, decliners were led by land transportation, insurance and electric power and gas issues.
The U.S. dollar retreated to the upper 147 yen range in Tokyo after hitting a seven-week high of 148.52 yen overnight.
Stocks had a muted, directionless day, with buying initially supported by a weak yen raising prospects of higher profits among exporters, while Wall Street declines overnight weighed on sentiment.
However, selling increased in the afternoon as the yen's depreciating trend appeared to run out of steam, adding to concerns that the market is still overheated after a recent six-day rally that added around 2,600 points to the Nikkei, analysts said.
"A slight strengthening of the yen in Tokyo under the 148 line versus the dollar and falling U.S. stock futures pushed traders to sell," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
