TOKYO, June 18 (Xinhua) -- Tokyo stocks closed lower on Friday as U.S. Treasury yields falling overnight weighed on financial issues, while the yen's strength against the U.S. dollar sent exporters lower.
The 225-issue Nikkei Stock Average lost 54.25 points, or 0.19 percent, from Thursday to close the day at 28,964.08.
The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, fell 17.01 points, or 0.87 percent, to finish at 1,946.56.
Local brokers said that while technology-related issues tracked their U.S. peers higher overnight in early trade, gains thereafter were reversed as investors sought profits after recent advances.
"While high-technology issues are supporting the Nikkei, investors took profits especially from auto issues such as Toyota, which had recently been on a rapid rise," Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co. was quoted as saying.
Also denting sentiment and sending financial issues lower was a drop in U.S. Treasury yields overnight and concerns about the outlook for U.S. interest rates, investment strategists here said.
"The market has been unsettled all week and it will be difficult to decide how to allocate money going forward as the direction of the U.S. rates remain unclear," Soichiro Matsumoto, chief investment officer for Japan at Credit Suisse Private Banking, was quoted as saying.
As for the yen's strength weighing on exporters, the U.S. dollar edged down to the 110 yen line, with the dollar quoted at 110.00-01 yen at 5 p.m. compared with 110.19-29 yen in New York and 110.59-60 yen at 5 p.m. on Thursday in Tokyo.
The euro, meanwhile, fetched 1.1915-1916 dollars and 131.07-11 yen against 1.1901-1911 dollars and 131.20-30 yen in New York and 1.1954-1955 dollars and 132.20-24 yen in late Thursday afternoon trade in Tokyo.
By the close of play, auto, marine transportation and mining-oriented issues comprised those that declined the most, and issues that fell outpaced those that rose by 1,570 to 540 on the First Section, while 83 ended the day unchanged.
Financial issues losing ground included Dai-ichi Life Holdings dropping 5.7 percent, while Sumitomo Mitsui Financial Group lost 2.6 percent by the close.
Toyota Motor skidded down 3.9 percent, as investors opted to lock in gains following the automaker hitting record highs this week.
Bucking the downward trend, internet-based medical services provider M3 added 3.4 percent, while medical equipment manufacturer Terumo ended the day 1.3 percent higher.
Semiconductor-oriented shares found favor, with Advantest rising 1.3 percent, while Screen Holdings ended up 1.6 percent.
On the main section on Friday, 1,512.55 million shares changed hands, rising from Thursday's volume of 997.59 million shares.
The turnover on the final trading day of the week came to 3,535.64 billion yen (32.08 billion U.S. dollars).