Tokyo stocks ended mixed Tuesday in a tug-of-war between bargain-hunting prompted by the Nikkei index's sharp fall the previous day and moves to reduce stock holdings due to fears of potential government intervention in the currency market to curb the yen's weakening trend.
The 225-issue Nikkei Stock Average ended up 35.82 points, or 0.09 percent, from Monday at 39,838.91. The broader Topix index finished 6.77 points, or 0.25 percent, lower at 2,714.45.
On the top-tier Prime Market, gainers were led by mining and insurance issues, while marine transportation and rubber product issues led decliners.
The U.S. dollar held firm in the upper 151 yen zone on U.S. yield rises overnight as stronger-than-expected U.S. March manufacturing data reinforced the view that the Federal Reserve will delay interest rate cuts longer than expected.
The Nikkei, which dropped to a two-week low on Monday, climbed above 40,100 in the first hour of trading as semiconductor-related stocks were bought back, but it slid into negative territory in the afternoon on a wave of profit-taking before finishing the day's trade slightly higher.
A cautious mood prevailed due to concerns about possible yen-buying intervention by the Japanese government, with the dollar creeping up toward 152 yen, a level at which the government intervened in 2022.
"Concerns are mounting among investors that any rapid yen appreciation induced by (currency market) intervention could lead to a drop in the Nikkei," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
