Roundup: Nikkei shed 0.10 pct on profit-taking, Greece debt concerns

The Nikkei stock index shed 0.10 percent Tuesday as investors opted to lock in gains following profits made Monday as the market closed at more than a seven-year high and concerns heightened about Greece's debt woes.

The Nikkei 225 index edged down 17.68 points to close the day at 17,987.09, while the broader Topix index of all first-section shares gained 0.18 percent, or 2.64 points, to finish at 1,462.07.

The morning opened with investors seeking profits from the market's rise the previous day, local traders said, with investors spurred on by concerns over ongoing negotiations regarding Greece' s credit, which have seemingly hit a brick wall.

"It looks like we completed the first round of profit-taking. Towards the end of last year, we were seeing funds flow from Japan and the United States to Europe and emerging markets, but it looks like that has stopped. Money is being reinvested again in U.S. and Japanese stocks," said Soichiro Monji, chief strategist at Daiwa SB Investments Ltd.

Investors here have been keenly eyeing how situations have been developing in Brussels between Greece and its eurozone creditors, brokers here noted.

Negotiations between Greece and its creditors effectively broke down Monday night, as concerns grow that Greece may exit from the single currency union.

Greece's Finance Minister, Yanis Varoufakis, was told by Europe 's financial leaders that negotiations would only continue if Greece allows the bailout package to be extended, something Greece 's new anti-austerity government is averse to.

The European Union, the European Central Bank and the International Monetary Fund, has said that Greece has until the end of the week to accept the conditions, although Varoufakis has intimated that the conditions are unacceptable and would not be accepted unless the other 18 members of the eurozone decided that the bailout deal and its austerity measures be diluted.

Despite the apparent impasses and Varoufakis accusing Europe's financial leaders of "playing games" with the future of Europe, he said that an "honorable agreement" would likely be reached, suggesting that the current deadlock was "Europe playing one of its usual tricks."

"People have hopes that there's a safety net for Greece and it won't default. They'll compromise someway. So there's buying on dips," said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co.

The current deadlock in Athens saw the euro fall to 1.1323 U.S. dollars and less than 134 yen during trading hours, but rise to 1. 1358 U.S. dollars and to 134.70 yen, with U.S. markets closed Monday for a national holiday.

The dollar was changing hands at 118.51 yen, up from 118.47 logged in London late on Monday.

Exporters rely on a weaker yen to boost competitiveness and profits made overseas when repatriated.

Panasonic added 1.8 percent to 1,404 yen and Fuji Heavy Industries, maker of Subaru cars, gained 0.8 percent to close at 3, 994 yen.

Among heavily weighted issues, Fast Retailing, owner and operator of the Uniqlo chain of high street apparel stores dropped 1.27 percent to 43,505 yen.

Japan Tobacco lost 1.75 percent to 3,660 yen, but robotics maker Fanuc added 0.96 percent to finish the day at 22,605 yen.

Skymark surged 164 percent, a new record, to 29 yen, following reports a financial company may invest in the embattled firm, that filed for bankruptcy last month.

Otsuka, however, relinquished 2.2 percent to 4,655 yen, following a rating downgrade by JPMorgan Securities Japan Co.

Trading volume on Tuesday fell to 2.31 billion shares on the Tokyo Exchange's First Section, down from Monday's volume of 2.46 billion shares, with advancing issues outnumbering declining ones by 1,111 to 620. Endi