Tokyo stocks close lower on profit-taking

Tokyo stocks close lower on profit-taking

The Nikkei 225 was down 0.79 per cent, or 211.09 points, to end at 26,433.62

Representative Image. Credit: Reuters Photo

Tokyo stocks closed lower on Monday, snapping a four-day winning streak, as investors locked in profits from recent rises.

The Nikkei 225 was down 0.79 per cent, or 211.09 points, to end at 26,433.62, while the broader Topix index fell 1.77 per cent, or 31.60 points, to 1,754.92.

The Nikkei index had opened higher, maintaining the momentum of global rallies fuelled by robust risk appetite among foreign investors, and optimism over the development of coronavirus vaccines.

But it was "weighed down by profit-taking" because of "cautious sentiment after the rallies", Okasan Online Securities said in a commentary.

A recent stream of positive vaccine news has brightened outlooks among global players, along with easing post-election political drama in the US.

"The global economy should be in a much better place in 2021," Stephen Innes, chief global markets strategist at AxiCorp, said in a note.

"Still, the pandemic's resurgence will likely keep things choppy in 1Q21 before vaccine distributions brighten the outlook over the balance of the year," he said.

This week, investors will be eyeing key US data including the ISM manufacturing index and jobs figures.

In Tokyo trading, automakers were lower with Toyota dropping 3.48 per cent to 6,999 yen and Honda tumbling 3.54 per cent to 2,871.5 yen.

Sony lost 1.10 per cent to 9,704 yen, while Panasonic slid 0.84 per cent to 1,112.5 yen and Canon sank 3.63 per cent to 1,853.5 yen.

SoftBank Group climbed 0.30 per cent to 7,272 yen while Uniqlo casual wear operator Fast Retailing jumped 2.15 per cent to 85,940 yen.

The dollar stood at 103.86 yen in Asian trade, against 104.03 yen in New York on Friday.