Tokyo stocks closed 0.33 percent lower on Wednesday, giving up early gains as the dollar turned down against the yen. The benchmark Nikkei 225 index fell 50.48 points to 15,076.08 while the Topix index of all first-section issues closed down 0.28 percent, or 3.43 points, at 1,233.43. "The dollar is the short-term catalyst, especially considering the lack of trading cues," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
The greenback eased to 100.03 yen in Tokyo from 100.13 yen in New York Tuesday afternoon. The falling dollar invited profit-taking after a recent rise on the stock market that saw the index pile on 7.7 percent last week. Trading was also tepid as the Bank of Japan began a two-day policy meeting to Thursday with markets waiting to see if its expands its huge stimulus programme. Speculation over the Federal Reserve's plans to reduce its bond-buying programme added some caution before the central bank releases the minutes from its October policy meeting later Wednesday.
On Tuesday Fed chief Ben Bernanke indicated the bank's stimulus programme would remain in place until the economy was back on track. In Tokyo, automakers were mixed as they kicked off the Tokyo Motor Show. Toyota ended down 0.15 percent at 6,290 yen and Nissan slipped 0.32 percent to 923 yen while Honda edged up 0.12 percent to 4,100 yen. Electronics giant Sharp jumped 7.55 percent to 299 yen after a brokerage upgrade, while the Nikkei economic daily also reported the company was considering supplying photocopiers for Hewlett-Packard.
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