Tokyo stocks ended slightly lower Tuesday as investors locked in gains after recent 34-year highs of key indexes, although losses were limited by buying of export issues on a weaker yen.
The 225-issue Nikkei Stock Average ended down 106.77 points, or 0.28 percent, from Monday at 38,363.61. The broader Topix index finished 7.39 points, or 0.28 percent, lower at 2,632.30.
On the top-tier Prime Market, decliners were led by insurance, pulp and paper, and farm and fishery issues.
The U.S. dollar remained firm in the lower 150 yen range, supported partly by buying from domestic importers, dealers said.
On the stock market, the Nikkei benchmark briefly climbed in the morning to around 200 points shy of its 1989 closing and intraday peaks, as the yen's weakness led investors to seek auto and other export-oriented issues, analysts said.
"High expectations for Nvidia Corp.'s earnings results and outlook also spurred buying of some semiconductor-related issues" ahead of the U.S. chip giant's announcement Wednesday, said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
But stocks largely lacked a clear direction throughout the day, amid a lack of fresh trading cues as the U.S. financial markets were closed due to a national holiday.
The market was also weighed down by selling after the Nikkei index and Topix index reached 34-year highs on Friday and Monday, respectively. A fall in U.S. stock futures also dragged down Japanese shares.
