Tokyo stocks ended mixed Thursday, as buying on dips erased an initial fall on caution ahead of U.S. inflation-related data later in the day.
The 225-issue Nikkei Stock Average ended down 41.84 points, or 0.11 percent, from Wednesday at 39,166.19. The broader Topix index finished 0.78 point, or 0.03 percent, higher at 2,675.73.
On the top-tier Prime Market, gainers were led by marine transportation, retail and mining shares, while the main decliners were electric power and gas, iron and steel, and nonferrous metal issues.
The U.S. dollar fell to the upper 149 yen range after Bank of Japan board member Hajime Takata expressed a positive outlook on achieving Japan's 2 percent inflation goal, fueling speculation the central bank could soon end its negative interest rate policy.
Stocks were weak from the outset, as investors took cues from overnight falls on Wall Street to lock in gains ahead of the release of U.S. personal consumption expenditure data later in the day, analysts said.
"If (the data) shows inflation cooling at a slower pace than expected, there might be some negative reaction in the U.S. markets tonight" as interest rates are likely to stay elevated for longer in the world's largest economy, said Koichi Fujishiro, senior economist at Dai-ichi Life Research Institute.
While the Nikkei benchmark dipped below 39,000 for the first time since it started climbing to record highs on Feb. 22, it trimmed losses in the afternoon to close almost flat, with buying supported by persistent optimism about Japanese equities, analysts said.
