Roundup: Nikkei down 0.37 pct following 7-year closing high, as yen's rise, Europe concerns weigh

The Nikkei stock index lost 0.37 percent Friday, retreating from seven-year highs reached the previous day, as the yen's rise dampened the market mood and impacted exporter issues in particular.

The Nikkei 225 index lost 66.36 points to end the week at 17, 913.36, while the broader Topix index of all first-section issues shed 0.01 points to close at 1,449.38.

Brokers here said following Thursday's significant gains, it was hard to chase the market higher and investors were opting for profits, particularly as the U.S. dollar has lost ground against the yen and concerns remain about Greece's debt crisis and geopolitical issues in Ukraine.

"We had a big gain yesterday and there's a sense of accomplishment after the Nikkei 225 reached 18,000. The dollar's falling again after the yen hit 120 against it. With the problems in Ukraine and Greece yet to be completely resolved, it's difficult to keep buying," said Juichi Wako, a senior strategist at Nomura Holdings Inc. in Tokyo.

But concerns over the situation in Ukraine began to ease somewhat on news European leaders, specifically Germany and France, had brokered a ceasefire deal and plan for peace in the conflict- hit region in eastern Ukraine.

Analysts also said an all-out sell-off was avoided, in par, due to progress in Greece's negotiations with its creditors, as European Central Bank policymakers have reportedly granted an expansion of emergency aid to fund Greece's struggling banks.

At the European leaders' meeting in Brussels, local media reported that the tone had become lighter although serious issues remain.

Greek Prime Minister Alexis Tsipras, a staunch anti-austerity advocate, was quoted as saying that he was very "confident that together we can find a mutually viable solution in order to heal the wounds of austerity, to tackle the humanitarian crisis across the E.U., and bring Europe back to the road of growth and social cohesion."

He maintained that Greece will not be "blackmailed."

For her part, German chancellor Angela Merkel, dubbed the " austerity Queen" by Greeks, suggested that Germany was prepared to compromise to an extent, as Europe's success has often been based on flexibility, but also stated that "Europe's credibility naturally depends on us respecting rules and being reliable with each other."

"The developments in Europe were positive for sentiment and should support the market's underside," said Ayako Terada of Nomura Securities Co.'s investment research department.

The U.S. dollar was changing hands for 118.54 yen, dropping from 118.97 yen logged in New York and 120.27 yen in Tokyo seen on Thursday. In addition to the yen's rise, economic concerns in Europe and worries over the Ukraine, some investors hit the sidelines ahead of the weekend to see how the situations play out ahead of the release of GDP data here Monday.

In share trading, top automaker Toyota skidded down 0.54 percent to 7,808 yen, while Mazda Motor reversed 1.5 percent to close at 2,364 yen.

Sony slipped 0.34 percent to 3,220 yen and Camera maker Canon lost 0.58 percent to close at 3,812 yen.

Among financial issues, Sumitomo Mitsui Trust, found favor, climbing 1.8 percent to 467 yen, following reports the lender is in talks to acquire Diners Club, Japan.

But both Sapporo Holdings and Kirin Holdings were notable losers Friday, with the brewers falling 7.9 percent, to 465 yen and 5.5 percent to 1,541 yen respectively, after they both reported sub par net profits for the year through December.

Watchmaker Citizen Holdings also lost ground and became the biggest drag on the Nikkei, diving 11 percent to 869 yen, even after it raised its profit outlook.

But e-commerce behemoth Rakuten found traction on the last trading day of the week, climbing 5.2 percent to 1,770 yen, after booking a new record net profit in the year through December.

Trading volume on Friday dropped to 2.56 billion shares on the Tokyo Exchange's First Section, down from Thursday's volume of 2. 77 billion shares, with declining issues outnumbering advancing ones by 911 to 812. Endi