Tokyo stocks close lower on yen's appreciation, profit taking

Tokyo stocks closed lower Wednesday as a rising yen against the U.S. dollar saw investors retreat from riskier assets and cash in on profits made during the course of the market's recent run of gains.

The 225-issue Nikkei Stock Average dropped 279.25 points, or 1.62 percent, from Tuesday to close the day at 16,955.73.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, for its part, finished 17.73 points, or 1.28 percent, lower at 1,362.07.

Compounding a circumspect market mood, local brokers also pointed to data released today by the Finance Ministry showing that company profits had plunged 9.3 percent in the first quarter of this year, while company sales had dropped 3.3 percent following a 2.7 percent retreat in Q4.

Market players also said the decision made by Prime Minister Shinzo Abe to further delay a consumption tax hike here from April 2017 to October 2019, sent mixed signals about the health of the economy and the efficacy of the Japanese leader's questionable economic policy mix.

As such, all industry categories on the main section retreated into negative territory, with fishery, agriculture and forestry, iron and steel, and electric power and gas-linked stocks heading up the notable decliners.

The day's turnover was 2,115.4 billion yen (19.12 billion U.S. dollars). Endit