Tokyo stocks ended flat Tuesday, as selling to lock in gains from recent highs was offset by buying to secure rights for dividends before the end of the fiscal year.
The 225-issue Nikkei Stock Average ended down 16.09 points, or 0.04 percent, from Monday at 40,398.03. The broader Topix index finished 3.16 points, or 0.11 percent, higher at 2,780.80.
On the top-tier Prime Market, gainers were led by insurance, machinery, and pharmaceutical shares. The main decliners were land transportation, oil and coal product, and pulp and paper issues.
The U.S. dollar moved narrowly in the lower 151 yen range in Tokyo amid wariness over possible yen-buying intervention by Japanese authorities, dealers said.
Stocks were directionless throughout the day, oscillating between negative and positive territory as buying on dips limited losses from investors taking profits from recent surges, while the market was also weighed down by Wall Street declines overnight.
Some export-related auto and electronics issues were sought amid the recent trend of a weakening yen, which boosts exporters' overseas profits when repatriated, analysts said.
Amid a lack of fresh catalysts, a "one step forward, one step back" trend has emerged as investors adjust their positions before the end of the fiscal year, said Makoto Sengoku, senior equity market analyst at Tokai Tokyo Intelligence Laboratory Co.
