Roundup: Nikkei closes down 0.35 pct on yen's rise after Fed's dovish remarks

The Nikkei stock index closed down 0.35 percent Thursday as investors opted to lock in profits following the yen's rise against the U.S. dollar, triggered by the U.S. Federal Reserve taking a dovish stance on its rate hike.

The Nikkei 225 index lost 67.92 points to close at 19,476.56, while the broader Topix index of all first-section issues closed down 0.42 percent, or 6.65 points, at 1,575.81.

Brokers here said global market's interpreting the Fed's statement as dovish sent the U.S. dollar lower versus the yen, meaning that issues here reliant on a weak yen came under pressure today as investors, having digested the Fed's message, thought it best to secure profits, as the wider market would be dragged down by the firm yen.

The Fed suggested that its first hike would not be in April, as some economists had predicted earlier on following a slew of economic data that showed the world's largest economy was on a sustainable recovery path.

But recent jobs data aside, the latest data concerning factory output in the U.S. came in below par and has likely given the Fed cause to pause, analysts here proffered.

The Fed dropped its term "patient" in its latest statement as regards when it will increase its interest rate and said no changes will be made until the central bank feels "reasonably" confident about its reflation goals.

"The dovish direction of the Fed hasn't changed. It's difficult to see rate hikes in June, and I expect the timing to keep being pushed back. Electronics and automobile shares in Japan will probably be sold on the fact that the yen didn't weaken as expected," said Mitsushige Akino, executive officer of Ichiyoshi Asset Management Co.

In Asian currency markets, the U.S. dollar was changing hands at 120.52 yen in the afternoon, down from 121.35 yen logged in Tokyo.

Nissan Motor Co. decelerated 1.5 percent to close at 1,265 yen, while Canon Inc. reversed 0.3 percent to finish at 4,122 yen.

But consumer electronics maker Sharp jumped 2.1 percent to 238 yen, after local reports said the embattled maker will slash its local workforce by 10 percent, by offering an early retirement scheme, as part of a broader restructuring initiative.

Nintendo, still in the spotlight for announcing a tie-up with DeNa to produce games for smartphones, surged 11.8 percent to 19, 100 yen, while DeNa jumped by its daily limit of 400 yen, or 23.4 percent, to close at 2,107 yen.

Mitsumi Electric, a maker of electric components for consumer products, which derives one fifth of its profits from Nintendo, slumped 3.7 percent, however, to close at 932 yen.

Aeon Financial Service also closed in negative territory Thursday, falling 4.7 percent to 2,954 yen, following Credit Suisse. cutting its rating on the firm's stock from "neutral" to " underperform."

Mitsui & Co., one of the largest trading houses in the world, added 0.15 percent to 1,655 yen, following the firm saying it plans to acquire 20 percent of U.S. company Penske Truck Leasing for 750 million U.S. dollars.

Trading volume on Thursday rose to 2.26 billion shares on the Tokyo Exchange's First Section, up from Wednesday's volume of 2.04 billion shares, with declining issues outnumbering advancing ones by 1,283 to 471. Endi