Tokyo stocks ended mixed Tuesday as investors locked in gains after the Nikkei index surpassed the 40,000 mark for the first time the previous day, although dip-buying in some chip-related issues helped limit losses.
The 225-issue Nikkei Stock Average fell for the first time in three trading days, ending down 11.60 points, or 0.03 percent, from Monday at 40,097.63. The broader Topix index finished 13.65 points, or 0.50 percent, higher at 2,719.93.
The U.S. dollar moved narrowly around the mid-150 yen zone, finding some support after a Federal Reserve official suggested Monday that the central bank is not rushing to reduce interest rates given the strength of the U.S. economy, dealers said.
On the top-tier Prime Market, decliners were led by service and marine transportation issues while construction and securities house issues were among the gainers.
The Nikkei briefly fell more than 200 points in the morning as some investors sold semiconductor-related shares that had been bought heavily in the recent rally, brokers said.
But the benchmark recouped some of its losses in the afternoon as Tokyo Electron and other chip shares attracted renewed buying, while automakers gained ground amid the yen's weakness, which boosts their overseas profits when repatriated, they said.
"Dip-buying kicked in as investors are betting the artificial intelligence boom will continue to stir demand of semiconductors," said Tomoichiro Kubota, senior market analyst at Matsui Securities Co.
"The Nikkei is likely to remain on a rising trend," said Kubota.
